Mike Sondalini — Thought Leader

The aim of being in business is to satisfy customers in ethical ways while making a profit. To achieve this, variable and fixed costs should be as low as possible without sacrificing on quality products or customer experience.

The term Operational Excellence is often used to refer to a range of technical, soft-skills, and culture components. Regardless of how it is phrased, the core definition and goal are the same – to produce better operational results, and create value for customers and shareholders. In short, Operational Excellence performance is to produce the best quality products or services customers will buy for the lowest expenditure to maximize operating profit. The most successful businesses have built systems and processes that automatically keep their costs low and profits high

 With the Quality that Improves Reliability

 Ultimately reliability is in the hands of the people that use, build and rebuild equipment. High equipment reliability requires precision workmanship and steady, considerate operation (known as Degradation Management). Both equipment operator and equipment maintainer need to be precise, they need to know exactly what to do to always produce great reliability. Most procedures and check sheets are so poorly written that they cause equipment to be failed. Standard operating procedures can create reliability if they ensure that users meet minimum quality standards. World-class standard operating procedures set not only a minimum level of quality, but they also set a highest level of quality that when achieved deliver amazing equipment reliability.

Figures 1 and 2 are examples of getting stuck trying to fix your current business when instead you ought to throw your troubles away and build a better business system. 

This business is a renowned company in its home country. It is well respected and profitable enough. But it could easily be much wealthier. There are vast new fortunes sitting in the business, but they will never be seen by its owners and managers. They are totally focused each day on trying to make the existing business processes and system work properly. In reality, their operational processes need to be redesigned to remove the problems stopping them from delivering the organization’s purpose. [Read more…]

The vital difference between using consequence or chance reduction strategies if you want operational excellence results, is consequence reduction requires repairs and maintenance, whereas chance reduction removes repairs and maintenance.

In reading “Enterprise Asset Management Success the Plant Wellness Way for CEOs and Senior Executives” I was interested in your table on page 15 that showed risk based inspection and condition based monitoring techniques as consequence reduction strategies.

My understanding is that both RBI and CBM are specifically designed to prevent failure through reducing the likelihood of failure i.e. by detecting failure before it happens within timescales that allow mitigation action to be taken. In the API 581 RBI standard, consequence is treated as a constant over time so the methodology specifically targets risk reduction through more effective inspection or design changes. [Read more…]

The Physics of Failure Factors Analysis for selecting maintenance strategy is a one-person exercise that identifies all ways a component can physically fail. Equally important to its simplicity is its ability to select the most effective life cycle strategies for maximising reliability. Another powerful business advantage is the failure-addressing solutions arrived at are universal solutions that apply to every other identical component, whatever equipment it is in. Do a Physics of Failure Factors Analysis for one part and you do it for all identical parts for the life of your operation. It is a highly accurate and cost-effective maintenance strategy selection methodology.

Charting historic equipment failure events visually shows the Failure Probability Density Function curve for that equipment. It is also known as a Failure Density Distribution Curve.

VALUE OF A DISTRIBUTION CURVE

Failure Probability Density Function curves, Failure Density Distribution Curves contain useful information about what has happened to equipment. These curves illustrate the chance of failure of an equipment over a period. Here, our fixed variables are the equipment’s components’ material-of-construction and design. As such, the only changing variable is the operating and maintenance strategies, including work processes, used by the company.

How to conquer the last frontier in equipment reliability, maintenance, and industrial engineering asset management: Our machines and materials of construction do not cause our equipment problems and failures. The real problem for industry is the ‘human factor’ in stopping people making mistakes. You gain control over the ‘human factor’ by providing clear and comprehensive work procedures that explain exactly how to deliver the performance required and that give users the means to check and improve their performance. The Accuracy Controlled Enterprise 3T procedure layout and content lets you provide your people with the details of how to do their work with exceptional quality, and the means to correct and improve their efforts until they are that good.

There is only one reason companies do maintenance on their physical assets—because it’s cheaper than not doing it. Unless doing maintenance makes a profit by saving money, it is wasting money. In the end, maintenance is about getting the best economics from physical assets. 

Keywords: plant maintenance management, equipment reliability, production risk management