Mälardalen University Press Dissertations Mälardalen UniversityNo. 99 Press Dissertations No. 99
STRATEGIC MAINTENANCE DEVELOPMENT STRATEGICIN MANUFACTURING MAINTENANCE INDUSTRY DEVELOPMENT IN MANUFACTURING INDUSTRY
Antti Salonen Antti Salonen 2011 2011
School of Innovation, Design and Engineering School of Innovation, Design and Engineering Copyright © Antti Salonen, 2011 ISBN 978-91-7485-010-9 ISSN 1651-4238 Printed by Mälardalen University, Västerås, Sweden Mälardalen University Press Dissertations No. 99
Mälardalen University Press Dissertations No. 99 STRATEGIC MAINTENANCE DEVELOPMENT IN MANUFACTURING INDUSTRY
Antti Salonen
STRATEGIC MAINTENANCE DEVELOPMENT IN MANUFACTURING INDUSTRY
Antti Salonen Akademisk avhandling
som för avläggande av teknologie doktorsexamen i innovation och design vid Akademin för innovation, design och teknik kommer att offentligen försvaras onsdagen den 1 juni 2011, 10.00 i Filen, Smedjegatan 37, Eskilstuna. Akademisk avhandling Fakultetsopponent: Professor Pra Murthy, The University of som förQueensland, avläggande avSchool teknologie of mechanical doktorsexamen and mining i innovation engineering och design vid Akademin för innovation, design och teknik kommer att offentligen försvaras onsdagen den 1 juni 2011, 10.00 i Filen, Smedjegatan 37, Eskilstuna.
Fakultetsopponent: Professor Pra Murthy, The University of Queensland, School of mechanical and mining engineering
Akademin för innovation, design och teknik
Akademin för innovation, design och teknik Abstract Industrial maintenance is a substantial financial post. The total value of maintenance budgets in Europe has been estimated to be approximately 1500 billion € per year. At the same time, there are indications that about a third of these costs are wasted due to poor planning, overtime costs, inferior use of preventive maintenance and so forth. However, the diversity between different types of industry is substantial. While the process industry, which is rather vulnerable to disturbances, has a tradition of viewing its maintenance as a strategic resource, the picture is quite different in discrete item manufacturing industry. Historically, manufacturing industry has had a surplus of finished goods and Work-In- Progress buffers between machinery. Therefore, the manufacturing industry has been able to fulfil its production demand despite unreliable production equipment. In the last few decades, the concept of lean production has started to spread within the manufacturing industry as a means to improve competitiveness. Manufacturing companies apply lean tools such as flow oriented production layout, Just-In-Time production and Demand-Flow-Technology. As a consequence, the vulnerability to system disturbances increases and hence, the demand for dependable production equipment increases. Despite this increasing demand on reliable production equipment, few manufacturing companies work with strategic maintenance development. One reason for this may be that the existing methods and concepts for maintenance development are quite resource demanding. The main objective with this research is to develop a simple and cost effective approach aimed to formulate, implement, and evaluate maintenance strategies for the manufacturing industry. In five case studies the following has been studied: (1) The industry’s view on strategic maintenance development, (2) Formulation of maintenance strategies, (3) Implementation of maintenance strategies, (4) Cost of Poor Maintenance, and (5) Results from strategic maintenance development. As a result from this research, a process for the formulation of maintenance strategies has been developed. Further, a number of driving forces and obstacles, that influence the implementation of maintenance strategies, have been identified. The concept of Cost of Poor Maintenance has been introduced as a means for evaluating the financial contribution of maintenance. Finally, three years of studies in three companies has shown substantial benefits from strategic maintenance development.
ISBN 978-91-7485-010-9 ISSN 1651-4238
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1.1
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1.1.1
1.2
1.2.1
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1.2.2
1.3
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2.1
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(1) The analytical approach
(2) The systems approach
(3) The actors’ approach
Explanatory Knowledge UnderstandingKnowledge (Explanatics) (Hermeneutics)
The approach of the researcher
Figure 1: The researcher's approach, compared with the approaches presented by Arbnor and Bjerke (1994). The figure shows how the different approaches relate to the scientific views of knowledge as being either explanatory- or understanding- focused.
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2.2
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2.3
Basic means Stages Main outcomes
Literature Research clarification The need for strategic analysis maintenance development
Empirical data Descriptivestudy I The industry’s view on strategic analysis maintenance development
Assumption Prescriptive study I Formulation of Experience maintenance strategies Synthesis
Empirical data Descriptivestudy II Implementation of analysis maintenance strategies
Assumption Prescriptive study II The Cost of Poor Experience Maintenance Synthesis
Empirical data Descriptivestudy III Results from strategic analysis maintenance development
Figure 2: The performed research, structured in accordance with the Design Research Methodology framework, adapted from Blessing and Chakrabarti (2009).
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Research Descriptive Prescriptive Prescriptive Descriptive Prescriptive Descriptive clarification study 1 study 1a study 1b study 2 study 2 study 3
RQ 1
RQ 2
RQ 3
Paper I Paper III Paper IV Paper II
Paper V
Figure 3: Design research methodology in relation to research questions and included papers.
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Table 1: Research structure
Stage Company Focus of the study Data sources RQ Paper
RC N/A The need for strategic Literature maintenance development I II 1, 2, 3 III IV V
DS 1 A View on strategic Interviews B maintenance Direct observations C Factors, strategically Documents D important for maintenance 1 I E The use of maintenance F performance indicators Sourcing of maintenance
PS 1a C Usability of consensus Interviews method for the identification Participant observations 1 II of maintenance performance measures
PS 1b A Development and test of the Participant observations B process for the formulation of Documents 1 II C maintenance strategies Workshop
DS 2 A Driving forces for strategy Interviews B implementation Survey 2 III C Obstacles for strategy implementation
PS 2 A Usability of the concept Cost Participant observations B of Poor Maintenance Workshop 3 IV C
DS 3 A Overall KPI-development Interviews B during the project Documents C Experiences from working 1,2,3 V with structured maintenance development
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2.3.6
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2.4.3
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RQ 1 Formulation of Maintenance maintenance strategies
Strategy RQ 2 Implementation of maintenance strategies Strategy implementation
RQ 3 Financial contribution of Performance measurement maintenance strategies
Figure 4: The main areas of literature studies in relation to the research questions.
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3.1
3.1.1
Primary production Primary Production production input output
Potential Maintenance production demand capacity Maintenance
Figure 5: The relationship between Production and Maintenance (Gits, 1994).
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3.1.2
Before a detected fault Maintenance After a detected fault
Preventive Corrective Maintenance Maintenance
Condition based Predetermined Maintenance Maintenance
Scheduled, continuous, or Scheduled Deferred Immediate on request
Figure 6: Overview of different maintenance approaches (SS-EN 13306, 2001).
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3.1.3
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4 The original reference (Japan Institute of Plant Maintenance, 1996) has not been available for review. 27
Establish Design Procure Operate and technical Install Commission Replace equipment Equipment Maintain specification
Feedback installation and commissioning experiences
Feedback operating and maintenance experiences
Figure 7: Terotechnology model, from Coetzee (2004).
3.1.4
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Policy Procedures Objectives Business plan
Management planning
Maintenance Maintenance plan operations
Operational Short term information operational Long term management strategic management Maintenance history
Management Measurement
Maintenance audit Performance measurement
Figure 8: The maintenance cycle (Coetzee, 1999).
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3.1.5
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5 The original reference (Altmannshoffer, 2006) has not been available for review. 30
• o o o o • o o o o • •
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The economic significance of maintenance in Sweden
Influence on the Cost Revenue losses environment
Direct Indirect Direct Indirect Damage cost
Maintenance Running-in Production losses Quality drawback Unstable purifying filtering Repair Reduced life cycle Saleslosses Delivery delay devices, unreliable process Service Rejectdue to poor Loss of market Loss of Good will control, automatic control and CBM maintenance share insufficient safety devicesdue Break down Inferior capability to poor maintenance Inspection etc.
Can be calculated Can be estimated to about Currently unknown but to 114 billion 62 billion Swedish krona increasingly growing costs Swedish krona estimated to 15-25 billion Swedish krona
The current total economic significance of maintenance in Sweden = 190 – 200 billion Swedish krona/year Figure 9: The economic significance of maintenance in Sweden (Ahlmann, 2002).
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3.2.1
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3.2.3
Function Business objective
Production objective Correct as Maintenance necessary objective Failure characteristics
Safety requirements Maintenance control Longevity requirements Life plans asset aquisition policy The strategic Personnel thought process policy Administrative Plant structure structure Preventive schedule Stores Work Production policy Planning system requirements
Workload Resource structure Budget forecast Plant layout Unions Contract labor availability
Figure 10: A Business-centered maintenance methodology (Kelly, 2006).
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Corporate objective Plant output factors Desired plant-operating pattern Desired output (availability; tons of product per period, etc.) Desired product quality
Maintenance resources (men, spares, tools, information) Maintenance Plant safety factors objective
Plant life factors (longevity)
Other plant factors Plant energy usage Plant ‘shine’ (cleanliness and tidiness)
Figure 11: Factors influencing maintenance objective setting (Kelly, 2006).
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Life-cycle Criticality SYSTEMS Audits of ORGANIZATION Design out performance Activities CBM and strategy Roles Life cycle Team working Skills Asset People RCM management documentation development support Flexibility TPM
Change Asset strategy
Aims & Objectives Targets Maintenance Policies strategy Benchmarking Practices
E-collaboration Planning Condition based Provisioning Computer (expert) Planning Shutdowns systems Work Planning
Asset maintenance Budgeting Condition Environment Structure management Control Contracting monitoring Spares Quality Employment
Figure 12: The range of maintenance policy sectors and their practices (Wilson, 1999)
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3.3
3.3.1
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3.3.2
3.3.3
6 The original reference (Geraerds, 1990)has not been available for review 41
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3.4.2
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CHAPTER 4
4.1
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4.1.2
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4.2
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4.3
Strategic goals of production
Company Strategic Strategic Company’s vision and goals of performance strategic goals mission maintenance indicators
Strategic Overall Maintenance S.W.O.T. development Gap-analysis strategy plan
Figure 13: A schematic view of the maintenance strategy formulation work-process, Appended Paper II, Salonen (2010).
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COMPANY Mission Vision Goals
PRODUCTION MAINTENANCE Goals that affect Goals, relating to Goals, relating to maintenance production management
Reliability Effectiveness Efficiency
Measures that affect Measures of Measures of maintenance effectiveness efficiency
Figure 14: The relationship between goals and measures, used by the maintenance and production departments, and the company’s overall goals, adapted from Salonen and Bengtsson (2008).
7 The concept of MTO originates in the Swedish nuclear power industry and is the Swedish equivalent to the English term “Human factors.” Its aim is to include human and organizational aspects within the technological aspects of safety (Rollenhagen, 1997). 53
Man Technology Organization
Competence Information systems Sourcing
Specialists Maintenance technology Organization
Material resources Work force
Maintenance policies Work hours Maintenance concepts Culture
Spare parts handling
Financial considerations Maintenance related measures Communication
Figure 15: Factors identified as strategic for maintenance, mapped according to Man, Technology, Organization, MTO, adapted from Paper II, Salonen (2010).
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4.4
Table 2: Driving forces and obstacles, identified in Descriptive study 2. DF indicates a Driving Force, while Ob indicates an Obstacle.
Factor Company A Company B Company C 1. Vision and goal setting DF DF DF 2. Leadership Ob/DF DF DF 3. Planning the implementation Ob Ob Ob 4. Resource assignment Ob Ob Ob 5. Training and Education Ob DF Ob/DF 6. Communication Ob/DF DF Ob/DF 7. Culture Ob Ob Ob 8. Outsourced maintenance* DF N/A N/A (Business relationship) 9. New business strategy* N/A DF N/A 10. New production concept* N/A N/A DF 11. Lack of stakeholder awareness* Ob Ob Ob * Factors not found in literature study.
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Corrective maintenance Preventive maintenance
Indispensable corrective Valid preventive maintenance: maintenance: Preventive Maintenance, necessary to Corrective Maintenance due to: uphold necessary dependability. Cost of -Failures with random distribution and no Improvements intended to increase the Conformance measurable deterioration. reliability of equipment. -Failures which are not financially justified to prevent.
Non-accepted corrective Poor preventive maintenance: maintenance: Unnecessary Preventive Maintenance Corrective Maintenance due to: Poorly performed Preventive Maintenance Cost of Non- -Lack of preventive maintenance conformance -Poorly performed preventive maintenance -Poor equipment reliability
Figure 16: The proposed Cost of Poor Maintenance model, in which corrective and preventive maintenance are divided into cost of conformance and cost of non-conformance, from Appended Paper IV, Salonen and Deleryd (2011).
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Table 3: Categories of costs related to CoPM (Appended Paper IV, Salonen and Deleryd, 2011).
Cost of conformance Cost of non-conformance Costs for Costs for valid Costs for non- Costs for poor indispensable preventive accepted preventive corrective maintenance corrective maintenance maintenance maintenance
Man-hours for maintenance (including administration) X X X X Exchange parts X X X X Lubricants X X X X Other material for maintenance, e.g., rags, X X X X cleaning solvents, etc. Lost production time X X X X Logistics, e.g., for spare parts or entrepreneurs X
Breakdown-related scrap and/or re-work X X Scrap and/or re-work due to poor maintenance X Breakdown-related over- time for recovery X X production Speed losses due to poor maintenance X
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Cost
Cost of non- Costof non- conformance conformance
Cost of conformance Cost of conformance Time
Figure 17: The expected outcome of structured use of the concept of CoPM, from Appended Paper IV, Salonen and Deleryd (2011).
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CHAPTER 5
5.1
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1: Evaluation 2: Strategy formulation
Overall •KPI •Aim business •Benchmarking •Goal strategy •Audit •Components Production •Etc. •Responsibilities strategy •Etc.
4: Control 3: Implementation
•Aim •Tactical/Operational level •Measures •Aim •Knowledgefeedback •Action plan •Re-use of experiences •Organization - roles •Etc. •Contracts •Etc.
Figure 18: The strategic maintenance development loop, consisting of a main loop from Steps 1 to 4, and feedback loops from Steps 4 to 3, and from Steps 2 to 1, from Appended Paper II, Salonen (2010)
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5.1.3
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5.2
5.2.1
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5.2.2
5.3
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5.5
5.5.1
5.5.2
5.5.3
5.5.4
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Check the best alternative in the following questions:
1. Which part of maintenance do you belong to? PM CM Team-tech.
2. Do you know the strategic goals of your maintenance? Yes No
3. One goal is to reach a distribution between PM/CM = 80/20. Does it make sense (On a scale from 1 – 5).
No sense Much sense 1 2 3 4 5 Don’t know
4. The distribution 80/20 should be reached by the end of 2010. Is this achievable? Yes No Don’t know
5. One of your goals is to decrease the stop time for breakdowns (CM). Does it make sense (On a scale from 1 – 5).
No sense Much sense 1 2 3 4 5 Don’t know
6. What is a reasonable goal for maximum stop time for CM? (Please try to set a reasonable goal) h
7. One of your goals is to reach e level of maximum 15 stops per week. Does it make sense (On a scale from 1 – 5).
No sense Much sense 1 2 3 4 5 Don’t know
8. The goal of 15 stops per week should be reached by the end of 2010. Is this achievable? Yes No Don’t know
9. Is it good to let the operators perform some of the routine PM? (On a scale from 1 – 5).
Not good Very good 1 2 3 4 5 Don’t know
10. Operators can perform more PM than today? Agree (on a scale from 1 – 5).
Don’t agree Fully agree 1 2 3 4 5 Don’t know
11. How well functioning is your operator maintenance today? (on a scale from 1 – 5).
Not well Very well 1 2 3 4 5 Don’t know
12. What do you think about the concept of team-technicians? (on a scale from 1 – 5).
Not good Very good 1 2 3 4 5 Don’t know
13How well functioning do you think the concept of team-technicians is today? (on a scale from 1 – 5).
Not well Very well 1 2 3 4 5 Don’t know
14. What do you think of the idea of an order-desk? (on a scale from 1 – 5).
Not good Very good 1 2 3 4 5 Don’t know
15. How well functioning is the order-desk today? (on a scale from 1 – 5).
Not well Very well 1 2 3 4 5 Don’t know
16. How good is the cooperation with maintenance engineering today? (on a scale from 1 – 5).
Not good Very good 1 2 3 4 5 Don’t know
17. Please rank the three areas that you consider most important for the maintenance organization to focus on in order to achieve the goals (1= most important, 2 = second most important, 3 = third most important). Leave the other areas blank. Methods and tools for diagnostics Extended PM-program Extended or improved PM-instructions Extended operator maintenance Increased number of team-technicians Extended spare parts storage Root cause analysis CBM Training of maintenance personnel Training of operators Extended service agreements with experts Guarantee handling Continuous improvements Internal knowledge distribution Other (specify)
18. If you have any other remarks or notions on the subject of maintenance improvements, please specify here.