Rx Report

POINTS OF INTEREST
Introduction to Reliability Excellence (Rx)
PAGE 1: The Need for Reliability
The Need for Reliability
Every manufacturing facility wants production equipment to operate reliably.
PAGE 2: When the equipment does what it needs to do when it needs to do it, plant output
The Reliability Model and profitability is maximized. No organization wants assets to break down, to
produce poor quality products, or to operate inefficiently. We want them to
PAGE 3: operate perfectly.
Business Benefits of Reliability
Unfortunately, we don’t live in an ideal world; no physical asset operates
PAGE 5:
flawlessly forever. In most organizations, breakdowns are the norm. Quality and
The Reliability Excellence (Rx) productivity losses are high. Scheduled shipments are missed. Corporate leaders
Model demand that the plant cut costs. The only time anyone pays attention to
maintenance is when production demands that they “get it running again, and
PAGE 7:
quickly!” The majority of work is done on a reactive basis.
Creating the Foundation
Defining the New Culture Run-to-failure maintenance is a reactive management technique that waits for
machine or equipment failure before any maintenance action is taken. It is in
PAGE 9:
Implementing Work Processes reality a no maintenance approach. It is also the most expensive way to manage
maintenance. Reactive maintenance centers on the craftsperson. When a
PAGE 11: problem develops, a craftsperson is dispatched to identify and correct the failure
Optimizing the Process or deficiency. Usually, he must make multiple trips to the tool room for additional
PAGE 14: tools, multiple trips to the shop for additional technical information, and multiple
Ensuring Sustainability and trips to the spare parts storeroom to get spare parts to repair the problem (and
Continuous Improvement any secondary damage that occurred because the equipment was allowed to run
to failure). Productivity is low and costs are high. In most cases, this approach
results in excessive downtime, cost and both production and maintenance effort-
hours.

This reactive management method forces the maintenance department to

maintain extensive spare parts inventories that include spare machines or at
least all major components for all critical equipment in the plant. The alternative
is to rely on equipment vendors that can provide immediate delivery of all
required spare parts. Even if the latter is possible, premiums for expedited
delivery substantially increase the costs of repair parts and downtime required to
correct machine failures. To minimize the impact on production created by
unexpected machine failures, maintenance personnel must also be able to react
immediately to all machine failures. The net result of this reactive type of
maintenance management is higher maintenance cost and lower availability of
process machinery. Analysis of maintenance costs indicate that a repair
performed in the reactive or run-to-failure mode will average about three times
higher than the same repair made within a scheduled or preventive mode.

There is a better way. If the right systems, structure, processes and procedures
are in place and executed well, losses are minimized, the operation is stable,
production output is maximized and quality is high. We call this a state of
Reliability Excellence (Rx).

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 The Reliability Model
Most reactive organizations assume that the maintenance function is responsible
for physical asset reliability. After all, when a reliability problem occurs, who is on
the hot seat to get it corrected? Unfortunately, when an analysis of the true root
cause of failure is done, the source of the defects that created the failure typically
has nothing to do with the maintenance of the equipment.

An analysis of root causes of reliability problems in the steel industry yields the
following causes:
• Procurement: 12% of the failures were caused by wrong parts, late
delivery, vendor selection and other factors
• Plant Engineering: 22% of failures were caused by improper design,
modification or other changes
• Management: 11% of the failures were caused by management
philosophy that drove a reactive mindset (don’t waste time doing a
quality repair; get it running quickly!)
• Sales: 15% of the failures were caused by improper product mix
(resulting in numerous process changes), delivery commitments, order
size and other factors
• Production: 23% of the failures were caused by improper planning, poor
procedures and operator errors
• Maintenance: 17% of the failures were caused by improper maintenance,
poor planning and errors
Another way of illustrating this point is the Reliability Model, shown below,
introduced by Ron Moore in his book, “Making Common Sense Common
Practice.”

The Reliability Model

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This model illustrates that defects can be produced at any point in the life cycle of
a physical asset. If the engineer designing the system selects equipment that is
minimally adequate, a potential defect is produced. If the purchasing agent
selects a poor quality component because it’s cheaper, a potential defect is
produced. If the storeroom attendant does not store the component in a way that
protects its physical integrity, a potential defect is produced. If the person
installing the asset does not use precision methods for alignment or balancing, a
potential defect is produced. If the operator starting up and running the
equipment does not use the proper procedures, a potential defect is produced. If
the craftsman performing routine maintenance does not do so with the
appropriate degree of precision and care, a potential defect is produced. All of
these defects have the opportunity to result in throughput losses, quality losses
or downtime. The end result is that we pay a penalty in manufacturing
performance and spend labor and material resources unnecessarily.

Business Benefits of Reliability

Achieving high reliability in manufacturing operations minimizes waste,

maximizes output and minimizes cost. It allows us to get the most out of our
physical assets.

Reduced production losses

Improving the reliability of production assets results in higher availability, greater
throughputs and improved process stability resulting in higher quality. One of the
most useful measures of production capacity is Overall Equipment Effectiveness
(OEE), which is calculated as:

OEE = % Availability x % Throughput Efficiency x % Quality

Reactive organizations experience significant production losses in each category.

Availability losses include:
• Planned shutdown losses – breaks, shift changes, no market demand
and downtime due to planned maintenance.
• Unplanned shutdown losses – equipment breakdowns, setups and
changeovers, tooling and parts changes and startups/adjustments.
Throughput efficiency losses include:
• Minor stops of very short duration
• Speed losses such as machine slowdowns or process fouling
Quality losses include:
• Scrap
• Substandard products that require rework
• Yield or process transition losses
Organizations that embrace the concepts of Reliability Excellence identify and
address the sources of all these losses.

Lower production unit cost

Production unit cost is one of the most critical variables impacting an
organization’s profitability. It is calculated simply as the sum of all manufacturing
costs divided by the production volume. Improved asset reliability impacts
production unit costs in two ways – by reducing the numerator and by increasing
the denominator. Ensuring that resources such as labor, materials, energy, and
fixed costs are used efficiently minimizes expenses. Eliminating losses as
described above ensures that production volume is maximized. Even if the
additional volume is not needed to support the business, eliminating losses

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 3

 enables an organization to reduce the operating schedule or rationalize the asset
base (which further reduces fixed cost.)

Reduced maintenance costs

Improved reliability results in lower maintenance costs. If the assets are not
breaking down, a greater percentage of maintenance work can be performed in a
planned and scheduled manner, which enables the workforce to be twice as
efficient. Fewer spare parts will be required. Less overtime will be needed.
Contractors will be used less frequently. All of these result in significant
reductions in maintenance spending. It is not unusual for organizations to
experience as much as a 50% reduction in maintenance cost as a result of
moving from a reactive style of management to a proactive approach.

Improved employee safety

Several studies have indicated that asset reliability and employee safety are
closely correlated. When the operations are unstable, as in a breakdown
environment, employees are often placed in awkward situations. They often take
shortcuts in an effort to get the plant back up and running, increasing the
likelihood of an injury. A culture that values reliability, however, minimizes these
It is not unusual for situations. Additionally, the same behaviors that result in improved reliability – the
organizations to discipline to follow procedures, attention to detail and the perseverance needed
to find the root causes of problems – result in improved employee safety.
experience as much as
a 50% reduction in Better process stability
maintenance cost as a Equipment breakdowns inevitably result in process upsets. It is difficult to have a
result of moving from a stable, optimized process when the production equipment is constantly failing.
reactive style of This inevitably results in problems with final product quality. When reliability is
improved, process variability is reduced and statistical process capability (CpK) is
management to a increased. This results in the capability to have a more stable, predictable
proactive approach. manufacturing process.

Extended equipment life

Many organizations spend an excessive amount of capital funds to replace
equipment that failed far earlier than it should have. If routine maintenance is
continually deferred due to production demands or resource limitations, the
organization is in fact mortgaging the future value of the asset – taking the capital
value from the future and spending it today. The end result is a wasted asset that
must be replaced. The financial result is excessive write-off expenses and a
requirement for a constant infusion of new capital. Organizations that place a
priority on reliability recognize that newer is not necessarily better, and that a
small amount of investment in routine care can pay big dividends in extended
equipment life. This frees up capital to be used for more productive purposes,
such as expansion or to implement new technology.

Reduced spare parts inventory

All organizations require some level of spare parts inventory to ensure the right
parts will be available when needed. Reactive organizations typically find
themselves carrying a large quantity of inventory because they cannot predict
when the parts will be needed. This ties up working capital and results in
excessive carrying costs. Organizations that take a proactive approach to
reliability place a high value in knowing the condition of their assets. The need for
parts is much more predictable. There are fewer surprises; more parts can be
purchased on a just-in-time basis. Since the volume of inventory required is
based largely on usage, using fewer parts means keeping fewer parts on hand.

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 4

Improved sense of employee ownership
In most reactive organizations, employees don’t exhibit a sense of pride in the
workplace. The high frequency of equipment failures demands that paying more
attention to making repairs and managing the consequences of equipment
failures than to routine preventive maintenance and housekeeping. Dirt and
contamination is widespread; little attention is paid to cleanliness. In proactive
organizations, however, basic equipment care is considered one of the most
critical elements affecting equipment reliability. Emphasis is placed on routine
cleaning, inspection for deteriorating conditions and basic lubrication. In most
cases, this is done by the personnel operating the equipment and is a
fundamental job expectation. As they take an interest in the condition of
equipment, operators tend to develop a sense of ownership – in the appearance
of the equipment and its operating performance.

Reduced risk of environmental issues

Equipment failures in many chemical processes can result in releases of
hazardous substances to the environment. Improving equipment reliability
reduces the risk of environmental releases. In fact, the OSHA 1901.119 Process
Safety statute specifically requires that the mechanical integrity of equipment
containing hazardous chemical substances must be maintained. Even if the
facility is not required to meet the Process Safety statute, there still may be
equipment covered by state and local environmental permits. In all cases, the
same systems and procedures that protect the reliability of production equipment
will protect permitted equipment as well, greatly reducing the risk of
environmental releases.

Reduced overtime
Reactive organizations can never predict when a critical equipment failure will
occur. Murphy’s Law typically applies; it will invariably happen at the most
inconvenient time and will require craft resources to be called into the facility to
correct the problem. To counter this reality, most reactive organizations have a
large percentage of the maintenance workforce spread across all operating shifts
just in case a failure occurs. In this situation, the equipment, not management, is
in control. Large amounts of overtime are necessary. In organizations that focus
on reliability, breakdowns are much less common. A larger percentage of craft
resources are on day shift where adequate staff support is available to increase
their productivity. Fewer resources are waiting for breakdowns to occur because
equipment condition is known and early warning signs of distress are heeded.

Continuous improvement
No organization can afford to accept its current level of performance or
competitive pressures will eventually drive it out of business. An organization
must continue to improve. One key element of Reliability Excellence is an
organizational focus on continuous improvement. A great degree of emphasis is
placed on systems that provide data on current performance, and the analysis of
that data is highly valued.

The Reliability Excellence (Rx) Model

Overview
Rx is a business philosophy, driven through cultural change that focuses on
equipment reliability and process control as the foundation of modern
manufacturing operations. By designing reliability into daily plant operations and
creating a culture of prevention and improvement, plants can operate as safer,
more productive and more profitable businesses.

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 5

Fundamentally, Rx focuses on:
• Production-led reliability: By the very nature of their jobs, equipment
operators have a closer connection with the equipment than the
maintenance department. Building a partnership between production and
maintenance, in which production owns the equipment and maintenance
provides reliable capacity, creates the optimal balance between
operations, production and reliability.
• Proactive culture: Time, money and resources are applied to preventive
and predictive efforts, not just spent on corrective and repair activities.
Problems are researched to find the root cause and solutions focus on
correcting the source of the problems vs. treating the symptoms.
• Metrics-based performance: Establishing meaningful, quantifiable
metrics enables a plant to measure performance and document
improvements.
• Continuous improvement: Promoting the philosophy that excellence is a
process, not a pre-defined level of performance, leads to implementing
processes and tools that support continuous refinement and
improvement in both equipment reliability and operating capacity.
Implementing Rx is best done in a series of five discrete levels. All levels must be
in place for a site to fully achieve Rx. Each one must be implemented and
solidified in turn; failure to do so will leave gaps that will make the next level
much more difficult and may even jeopardize the success of the entire effort.
The five levels of Rx, shown in the model below, are:
1. Creating a foundation with vision and values
2. Defining the new culture in which work is accomplished
3. Implementing work processes that are defined, disciplined and effective
4. Optimizing work processes to improve efficiency and effectiveness
5. Measuring performance to ensure sustainability and continuous
improvement
Each level has specific elements that must be in place for that level to be fully
functional.

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 Creating the Foundation
The first level of Rx implementation involves building the foundation for the entire
process. This is the most critical area to address. If the foundation is not solid,
the Rx initiative will not produce the desired results. Two elements comprise this
level – Plant Partnerships and Management Commitment.

Management Commitment
Change initiatives require three things to be successful: dissatisfaction with the
current state, a clear and compelling vision of the future state and a detailed
transition plan to get to the future state. Site leadership must provide the first two.
For this reason, management commitment is one of two foundational elements of
a Rx initiative.

There must be valid business reasons for embarking on this journey. It may be
site profitability, market forces or simply a corporate directive. In all situations,
local management must have a clear idea of the business value to be gained
from such an initiative. Otherwise, resistance to change will be high.
A partnership must Implementing Rx is not a short-term endeavor – it typically takes three to five
exist between all years to implement fully. Because it is difficult to maintain focus on any initiative
departments affecting for this length of time, Rx must have sustained management understanding,
equipment reliability. commitment, support and involvement. Management must exhibit the correct
Each group should behaviors that reinforce the transition.
understand the Plant Partnerships
relationship between its Management commitment is needed to ensure that the next foundational
systems, procedures element, plant partnerships, is in place. Sites cannot achieve Rx with sole focus
and actions and the on the maintenance function. The maintenance function does not have entire
resulting impact on control over all aspects needed to produce reliability – initial equipment design,
installation, operating within design limits, access to equipment for PM, etc. A
reliability. partnership must exist between all departments affecting equipment reliability.
Each group should understand the relationship between its systems, procedures
and actions and the resulting impact on reliability.

Like safety, reliability must be part of everyone’s responsibility and management

must drive this. If an adversarial relationship exists between maintenance and
operations (or any other function, for that matter), the effort will not be successful.

Defining the New Culture

The culture is the set of rules and philosophies that govern day-to-day behavior.
Local leadership “owns” the culture and is responsible for changing it. It is
unreasonable to expect employees to behave any differently unless management
is able to articulate a new philosophy and change their own behaviors to support
it.

Status Assessment
The status assessment paints a clear picture of the current state and provides a
starting point for creating a vision for the future. All organizations require a
periodic review to identify shortfalls in functional performance and to provide
direction for improvement opportunities. This is most effective when done by
someone outside the local organization because they are not bound by the
paradigms produced by the facility’s culture. The Status Assessment evaluates
the existing systems, structure and processes that produce the current results.

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 7

 Only when these are known can a site be prepared to develop a plan to migrate
to the future state.

Governing Principles
In the Rx model, the new philosophy is known as governing principles. These
principles represent a set of shared beliefs that all functions in the organization
must share to create a culture that values Rx. Site leadership must develop and
articulate these beliefs and values, then share them throughout the organization.
Essentially, the governing principles become the set of rules and attributes
defining the new culture.

Objectives and Goals

As stated earlier, one of the things necessary for change is a compelling vision of
the future state. This concept is somewhat nebulous to many people, but can be
clarified in a set of objectives and goals that define the results that must be
achieved. Metrics drive behavior. The correct metrics, used correctly, will drive
the correct behavior. Ideally, these objectives, goals and targets are created after
a clear statement of the mission (one of the governing principles) has been
developed.
A written project plan
Master Plan
that has active One of the requirements for change is a detailed transition plan to move the
leadership support and organization from current state to future state. In the Rx model, this is known as
involvement is the Master Plan. Organizations typically require three to five years to make the
essential to help the transition from a reactive culture to a proactive one that embraces Rx concepts. It
organization sustain its is very difficult to sustain any initiative for this length of time, much less one of
this complexity. A written project plan that has active leadership support and
focus and implement involvement is essential to help the organization sustain its focus and implement
all required activities. all required activities.

Organizational Behavior
The final element in defining the new culture is to create a climate that promotes
a concern for quality and precision. Employees must be encouraged to become
engaged with their minds as well as their hands. Management must create a
working environment that promotes the correct organizational behavior. When
the entire workforce is able to achieve a high level of self-satisfaction, everyone
in the organization will benefit.

This does not mean that everyone should be allowed to make his or her own
rules. Proactive organizations are highly disciplined; everyone understands and
follows the appropriate policies and procedures. Examples include “No
maintenance work is done without a work order,” or “Preventive maintenance
activities are considered some of the most important work that we do.” It is within
the framework of these procedures that employees are encouraged to excel.
Quality is defined as conforming to requirements rather than a degree of
“goodness”. Deviation from established standards cannot be accepted.

Performance Management
One key differentiator between reactive organizations and proactive
organizations is the degree of discipline within the workforce. Employees face
choices every day. They can choose to take shortcuts (that invariably lead to
substandard performance) or they can choose to do the little things right that lead
to superior results. Performance management is the process by which
management holds the workforce accountable for doing the little things right, so
the big bad things don’t have a chance to happen.

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 8

 Implementing Work Processes
Once the appropriate culture is in place, the facility is ready to implement
standardized processes for doing daily work. When change is introduced into an
organization, work processes are what we change. In the words of Dr. W.
Edwards Deming, “Our processes are perfectly designed to give us the results
we are getting.” If we desire improved results, we must improve our processes.

Work Control
The first process to be addressed is the work control process. This is the vehicle
by which all maintenance work is managed and documented.

An effective work control process screens out the unnecessary and unimportant
activities, establishes responsibility for planning and execution of work, reduces
mistakes, and provides a universal understanding of what is to be done and the
priority sequence that is to be followed. Work orders provide a means of charging
labor, material and outside services to the asset owners and serve as
Properly using a work
authorization documents for work execution. As the source documents for
order system maintenance cost and performance control, work orders drive integrated
establishes accurate maintenance management.
work backlogs,
facilitates job Properly using a work order system establishes accurate work backlogs,
facilitates job preparation, enhances control of maintenance work, creates
preparation, enhances
equipment histories and increases effectiveness of maintenance work groups.
control of maintenance
work, creates Scheduling and Coordination
equipment histories The next basic process to implement is scheduling. Developing weekly work
and increases schedules for the entire crew begins to instill a sense of accountability in the
organization. Often, this is the first time each craftsperson and supervisor has
effectiveness of
had a plan from which to organize their day. They find that much more work gets
maintenance work done when everyone knows at the end of the day what they will be working on
groups. the next day and how long it is expected to take. For this reason, scheduling is
often the process that yields the fastest return in a Rx implementation.

Ideally, weekly schedules are developed jointly by Operations and Maintenance.

In successful organizations, the schedule is viewed as a contract between the
two groups. Operations commits to have the assets available at the agreed-upon
time while Maintenance promises to have the resources – labor, material,
contractors, etc. – available to execute the work promptly. Both groups are held
accountable for compliance.

Operator Care
Proper maintenance to insure reliability on installed manufacturing equipment
doesn’t begin with a mechanic or engineer. It begins on the floor where the
equipment operates. And who better to take care of that equipment than the
individual who lives with it when it operates? The operators have the first and
best opportunity to insure the reliability of their equipment. We usually think of
operations management as owners of equipment, but they don’t live with it – the
operators do.

Operator care is all about putting ownership where it belongs. You are the
owner/operator of your car and hopefully you wouldn’t wait for a mechanic to tell
you that your car needs maintenance. You do maintenance on a time-based
schedule or when you first notice something going wrong. That is because you
depend on this car (machine). You are the one behind the wheel, use it daily and

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 9

have the first look. That is where an operator is. And that is where proper
maintenance leading to Rx begins.

Equipment and Process Design

No amount of maintenance effort can put reliability in a marginal design. Studies
have shown that 95% of the ultimate life cycle cost of an asset is determined at
the design stage. An effective equipment and process design system must be in
place that focuses on minimizing the total life cycle cost and maximizing asset
reliability.

Preventive / Predictive Maintenance

Preventive maintenance is the routine cleaning, lubrication, inspection and
adjustment that all machinery requires to maintain good health. It may also
include replacing components known to be subject to wear. Its objective is to
prevent equipment failure and the corresponding downtime and repair cost.
When vigorously pursued, this element is arguably the most critical for creating a
proactive environment. Knowledge of equipment condition provides a framework
for all planned maintenance activity.

An unfortunate aspect of maintenance is that if basic equipment care activities

are skipped, the consequences are not immediately obvious. The equipment will
operate for some time, perhaps for weeks or even months. However, it is
inevitable that it will eventually fail. Proactive organizations understand this and
consider preventive maintenance to be some of the most important work that
they do.

Basic preventive maintenance is time-based; it is done on a set schedule or

elapsed hours of operation. Many organizations assign responsibility for these
tasks to operations personnel. This is an excellent method for gaining their
involvement in reliability and creating a sense of ownership for the equipment. In
these instances, the maintenance function must not abdicate its responsibility to
ensure the tasks are done according to the schedule.

Predictive maintenance takes a preventive maintenance program to the next

level. It includes testing and inspection activities that generally require more
sophisticated means to identify deteriorating conditions than the basic visual
inspections of preventive maintenance. In most cases, impending problems can
be detected much earlier in the degradation process and corrective activities can
then be scheduled at a time most convenient to the operation. Additionally, most
equipment can be monitored during operation, eliminating downtime required for
intrusive visual inspection.

An added benefit of a mature predictive maintenance program is the ability to use

technology to assist in identifying the causes of equipment problems. Analysis of
the operating dynamics of machinery can often identify issues related to design,
maintenance or operational procedures that impact equipment reliability. Several
studies have shown that maintenance activities performed on the basis of
equipment condition are nearly always less expensive and more effective than
those conducted on a calendar or usage basis.

Procurement
An effective procurement process must be in place that ensures materials are
purchased with an eye toward minimizing the total life cycle cost of the asset.
When we consider all of the hidden costs associated with equipment and parts
procurement, the procurement function can have a huge impact. If a component
substitution is made on the basis of low price, it may result in excessive

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downtime. When a different vendor is selected from the plant standard, it may
result in the need to stock additional spare parts or to incur additional training
costs.

Materials Management
The next process to put in place is the one that provides the parts and materials
required to perform maintenance work. An effective materials management
process ensures the right materials are available at the right time in the right
place at the right price. To effectively fulfill its mission, the maintenance function
depends on reliable and prompt material support (spares, replacement parts,
supplies and special tools.) These are either stored on site in the form of
inventory or are purchased from outside vendors as the need arises. In either
case, the best maintenance program in the world will fail without an effective
materials management process.

Optimizing the Processes

When the basic processes are put into place and are functioning to some degree,
it is time to work on the elements required to optimize them. These can be
addressed in virtually any order. It bears repeating that implementation of the
basic processes must be done before attacking this level of Rx – otherwise,
there’s nothing to optimize!

Computerized Maintenance Management System / Enterprise Asset

Management
The Computerized Maintenance Management System (CMMS) / Enterprise
Asset Management (EAM) automates the work order process and enables
collection, dissemination and analysis of data. Obviously, the configuration of the
CMMS / EAM must be consistent with the design of the work order process.
Proactive maintenance organizations run on information. The CMMS / EAM is
the primary source of this information.

Cultural discipline must be in place for this tool to be used effectively and to
provide the maximum return on investment. The computer system is a highly
ordered entity. If the work order process is not well defined and universally
followed, we are attempting to overlay structure onto an unstructured process.
This is always a recipe for failure.

Supervision
Good supervision is the art of getting average people to do superior work. The
Maintenance Supervisor is responsible for the effective execution of work. Once
the plan is created, his team direction becomes the critical factor. Craft resources
need to know job details, how the job is to be performed and what is expected of
them. Although the Planner has provided these details in the work package, the
supervisor is the backbone of job execution and is solely responsible for
conveying these elements to the craftspeople.

The supervisor is the direct link between the hourly workforce and management.
It is his responsibility to enforce the appropriate organizational behavior. It is also
his role to create an environment within his team that facilitates the identification
and resolution of reliability problems. This function optimizes the scheduling
process by ensuring that craft productivity remains high enough to accomplish
scheduled work promptly.

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 11

 Organizational Structure
An effective organizational structure must be in place that promotes a proactive
mindset and clearly defines individual roles and responsibilities. Spans of control
must be reasonable to allow individuals to carry out their responsibilities
effectively.

Often, a site will change its organizational structure in the vain hope that
reshuffling the deck will create some miracle of improved performance. It is
important to realize that simply changing reporting relationships – lines on a
sheet of paper – within an organization will not necessarily drive the correct
behavior. It is what people do that delivers results, not who their boss is. For this
reason, the organizational structure must be aligned with the work process. In
alignment, it will facilitate the correct behavior. If not aligned, it will detract from
the effectiveness of the process and may even render it useless.

To achieve Rx, the organization must provide for the three functions of
maintenance management: supervision of work execution, planned work
preparation, and engineering dedicated to eliminating repetitive failure. In
addition, the organization’s structure must be designed so that the three types of
Studies have shown maintenance work – reliable routine service, prompt emergency response and
that a planned job only timely backlog relief – can be performed effectively.
takes half the time as
the same job done Training
Tomorrow’s technology cannot be maintained with yesterday’s skills. Technology
without planning. is progressing rapidly and the skills of the workforce must advance at the same
rate or reliability issues will result. An effective skills training program ensures
capabilities keep pace with technology. There is also a growing shortage of
skilled craft resources. Industry is finding it difficult to locate replacements for
natural attrition and must create their own skilled craft labor.

Ideally, training should be targeted at skill deficiencies. This is most effectively

done through a well-defined process: identifying the skills needed to do the job,
assessing individuals against that skills inventory and customizing a training
program to the skills gaps.

A good training program and formalized work processes are mutually supportive.
Training supports the work processes by ensuring craft resources can perform
work at acceptable levels of productivity. It also promotes scheduling and work
assignment flexibility when personnel are skilled in more than one craft.
However, if formal work management processes are not in place, even the most
highly skilled craftsperson will not be productive.

Work Planning
Maintenance work is done productively when sufficient preparation – arranging
for tools, materials, work instructions, specifications, support crafts, etc. – is done
in advance. This formal process, known as work planning, should be performed
by professional planners. It takes a unique skill and organized thought process to
properly prepare work to be done by others.

It is important to realize that whenever maintenance work is done, it is planned.

Someone decides what needs to be done and what materials and tools are
required. In reactive environments, it’s usually the craftsperson that makes these
decisions and it’s normally “under the gun” of a breakdown that has to be
repaired quickly. There is little time for forethought. Several trips are required
from the work site to the storeroom for parts, tool crib for tools, or maintenance
shop for technical information. These all result in wasted time and effort. Studies

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have shown that a planned job only takes half the time as the same job done
without planning.

Planning enhances several work processes described earlier. It facilitates the

work order process by allowing work to be done in a more orderly fashion. It
helps the scheduling process by defining work content, allowing more precise
estimates of job duration. It helps optimize the materials management process by
enabling materials to be purchased when needed, reducing the need for
inventory.

Work Measurement
Realistic labor estimates are an essential part of a planned maintenance
program. There is no effective method of balancing available craft resources with
workload without work measurement, and it is difficult to make realistic promises
when taking equipment out of service. Estimates are also essential when
determining what the correct staffing should be for each labor grade and what
level of crew performance is being attained.

Work measurement enhances the scheduling process by creating the ability to

make accurate time commitments and to ensure al resources are fully loaded
with work. The work order process is optimized with the measurement of backlog
and labor distribution by work type. The preventive maintenance program
benefits by ensuring that the scheduled jobs can be done per the plan. Not “over
committing” craft resources reduces superficial inspections.

Loss Elimination
The loss elimination process begins with measuring asset performance. For
manufacturing, the tool to use is OEE – Overall Equipment Effectiveness.
Essentially, OEE is the product of Time x Speed x Quality efficiencies.
Comparing ideal OEE performance to current state performance will identify gaps
in the three loss categories. It is equally important to know what a 1% loss in
OEE is worth in profit to the organization. The next step is to create a Pareto
chart indicating the losses in each category to allow people closest to the specific
problem to conduct a RCFA – Root Cause Failure Analysis. Knowing how much
the problem costs, and the root cause, enables the organization to develop an
economic solution that will either eliminate or at least reduce the chance of
reoccurrence. The organization must create an environment where performance
is communicated, a culture where people are engaged to relentlessly identify and
eliminate defects.

Facilities and Equipment

A well-developed maintenance organization cannot realize its full potential
without adequate, well-situated and well-equipped facilities. This implies not only
the physical location and size of maintenance facilities, but also the layout and
equipping of shops, offices and storerooms. In addition, special tooling must be
available to craft resources as needed to perform assigned work efficiently.
There are few things more frustrating to skilled personnel than trying to do a
quality job without the proper tools.

Adequate facilities and equipment support efficient execution of work by

minimizing delays and wasted effort. Clean, well-organized surroundings and
proper support equipment promote a concern for quality and precision – both
essential to good equipment reliability.

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 Ensuring Sustainability and Continuous Improvement
The final level implements those elements necessary to sustain Rx and enable
continuous performance improvement. There will always be opportunities to
improve reliability, and the systems and structure necessary to manage these
must be in place and functioning smoothly.

Reliability Engineering
The reliability engineering function is responsible for driving out sources of
repetitive failure. Its mission is to provide the proactive leadership, direction,
single point accountability and technical expertise required to achieve and
sustain optimum reliability, maintainability, useful life, and life cycle cost for a
facility’s assets. This is accomplished through two major responsibilities:
developing and refining the preventive/predictive maintenance program, and
developing engineering solutions to chronic reliability problems.

Although many of the other elements indirectly affect reliability by creating the
infrastructure necessary to manage it, the reliability engineering function has
more of a direct effect. For this reason, it can and should be able to justify its
existence in financial terms on an annual basis. Each Maintenance Engineer
should identify and resolve operational or maintenance problems with an
equivalent value of at least twice their annual salary.

Audits
When new processes (or refinements to existing processes) are put in place, one
cannot make the assumption that they will be followed unilaterally. A well-
conceived strategy of regular process audits will ensure that individuals are
complying with the new design and will offer opportunities to identify areas for
further refinement. If the process changes are worth making, they are worth
auditing. If management does not follow up, it is a sure bet that people eventually
will deem them unimportant and develop shortcuts – to the detriment of results.

Equipment History
The use of historical repair and maintenance information is critical to continuous
improvement in reliability. Equipment history makes it possible to refine
preventive and predictive maintenance programs by targeting maintenance tasks
to failure modes actually observed. It also allows the maintenance engineering
function to identify chronic reliability problems on the basis of real data instead of
gut feel or conjecture. Equipment history is produced by a sound work order
process and requires very little extra effort to input information about problems,
causes and actions taken. It also helps refine planning and work measurement
processes by providing actual information that can be compared to initial
estimates.

Configuration Management
Configuration management is the process that controls changes to infrastructure
and assets. It consists of two main elements: actions necessary to optimize the
useful life of the facility and management of physical changes to identify and
control unintended consequences. It is intended to bring logic and discipline to
the process of managing the life cycle costs of facility assets. An effective
process will ensure that all decisions that directly or indirectly affect reliability,
maintainability, life cycle costs, and financial performance of the facility are made
through analysis of factual data and a disciplined decision-making methodology.

Configuration management sustains Rx by ensuring that equipment configuration

is appropriately controlled and that the equipment maintenance strategy remains

© 2009 Life Cycle Engineering, Inc. | www.LCE.com 14

valid. It also ensures that necessary information – O&M manuals, Bills of
Material, repair procedures, etc. – remain current.

Budgeting and Cost Control

The budget for maintenance and reliability often represents the single, largest
controllable cost line item in an organization’s budget. It is critical to manage
these expenditures carefully, and an effective budgeting and cost control process
will accomplish this.

A budget is a cost goal. It is not primarily historical and should be considered as

a forecast of future expenditures. Budgets will never be meaningful if established
as an arbitrary percentage increase (or decrease) over the previous year.

An effective budgeting process considers individual equipment maintenance

needs, and therefore should be developed from a zero basis by major equipment
item. Future reliability improvement projects should be taken into account if cost
reductions are anticipated. An effective work order system that distributes all
costs to the equipment level is necessary so that the budget can be controlled at
the equipment level. Effective cost distribution will indicate if continuous
improvement activities were effective.

Management Reporting
“What gets measured gets improved.” Management reporting is the process
whereby management receives feedback on performance of a given process and
makes corrections as needed. Management reports are used for two main
purposes: to provide factual information on which to base plans, decisions, and
actions to monitor and control operations as required, and to enable the manager
to evaluate the effectiveness of those decisions.

An effective reporting system sustains the Rx initiative by tracking performance

against the critical metrics defined as objectives, goals and targets. It also
supports continuous improvement by validating that desired changes in
organizational or process performance are actually occurring.

Summary
The five levels of Reliability Excellence must be addressed in turn for a site to
fully achieve its potential in reliability, lower costs and increased profitability.
Each builds upon the successes of the previous level. If one element in a level is
not healthy, it jeopardizes the stability of the levels that follow.

Life Cycle Engineering (LCE) has invested more than 30 years in developing
processes and methodologies to enable organizations to effectively and
efficiently establish world-class reliability and support Continuous Improvement,
Six Sigma and Lean Manufacturing. In our experience, the successful
implementation of Continuous Improvement, Six Sigma and Lean Manufacturing
requires a solid foundation of Rx best practices. Implementing Rx creates the
stability required to sustain the benefits from these other initiatives.

To find out more about implementing Reliability Excellence in your organization,

please visit Life Cycle Engineering’s website (www.LCE.com), email us at
info@LCE.com or call 843-744-7110.

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