Industrial Engineering Defragmenting Airport Operations Through Systematic Management Session Agenda

Industrial Engineering Defragmenting Airport Operations Through Systematic Management Session Agenda

Industrial Engineering Defragmenting Airport Operations through Systematic Management Session Agenda • What is Process Engineering, and how its impacting ACAA • Current format of Facilities Maintenance • Life cycle of Maintenance Engineering • Standardization of our maintenance programs • Case Studies and success stories • Performance Metric reporting and why it’s important VITAL • Future state By the Numbers • 2,000,000+ square feet of responsible infrastructure Facilities • 35+ buildings at two separate airport Manager locations • 12,296 listed assets Maintenance Trade Trade Manager Supervisor Foreman • 260+ frontline labor employees • 22 different union trade designations in 12 trade groups Tradesperson • 39,312 work orders, 248,469 labor hours in 2018 Tradesperson • 1 Process Engineer Tradesperson *Orange denotes union designation What is Process Engineering? • Industrial vs. Process Engineering • Underutilizing personnel due to inefficiencies • What we do vs. what we could/should do • Improving work methods & developing standards for benchmarking • Increase efficiency, effectiveness, focus of frontline employees and supervisors • Expand trade bandwidth • Put out the fire Planned Maintenance Process Engineering - Maintenance • There is a big difference between being busy, and being productive - Are managers staying within the confines of their job description? - Are we having a positive impact/adding intrinsic value to our facilities? - Are we prepared to do the job? • Are we getting the best bang for our buck? - Avoiding $25 problems vs. $25,000 problems - Utilizing the skillsets of our personnel and helping to maximize their efforts • Are we actually preventing future maintenance? - Do these actions even need completed, or is it even an asset? • Are we focusing too much on things that don’t matter? - Should the asset simply run to failure? Maintenance Engineering Life Cycle • Asset Management defines the “what” and “why” by defining managed assets Asset - Managed vs. Non Managed assets Mgmt. • Process Engineering defines the “how” - CMMS setup, procedure update, form dev. - PM Service work CAN BE standardized! Facilities Process Supervisor Engineering • Trade Supervisors define the “when” - While PMs populate from AM, separate planning efforts are required • Frontline Employees complete the work, collect the data, and influence after action response. Frontline Trade • Facilities Supervisors are the final checks Employees Supervisors and balances - Did we complete the work order as intended? - Did we meet the completion standard? - Did we account for parts and labor? Maintenance Engineering Life CycleStrategic Long Term Work Order Enhancements Maintenance Program Scope Managed Assets Non-Managed Assets Priority 1: Reduce Operational Variance • Variance - The fact or quality of being different or inconsistent • Correlation does not imply causation when variance is high • We define what is acceptable levels of variance through comprehensive development High Variance Low Variance -Inability to plan work - Planning work is easy -Inability to manage personnel - Outlier events can be investigated -Inability to estimate project labor individually costs - Project labor can be estimated to expand -Inability to generate ROIs for capital a trade bandwidth purchases - Productivity increases can be measured to determine ROI Standardized FM Documentation • Preventative Maintenance (PM) Procedure • First step to making scheduled PM work the focal point - Keeps critical assets under constant oversight - Ensures personnel are active and work is fulfilling • Eliminate variables that lead to variance, acts as a guide when managers are unavailable, incorporates EH&S - Safety is not a buzzword • Unique to each PM category - Criteria Defined - Reoccurrence Period - PPE - Action Items - Personnel - Procedure - Duration - MISC Notes - Safety trainings • Effective management tool for accountability • The foundation to Facilities, ALS, and Asset Management Standardized FM Documentation Case 1: Jetway Water Cabinets • Original State: - 60+ cabinets, 3 oz. chlorine added (2 hour hold) and flushed for 20 minutes, inspected using two labor hours per cabinet, on a quarterly basis on afternoon shift. • Fact finding - What action items need completed? - How many people does it take and when do we do it? - How much chlorine do we need to use, per the manufacturer and FDA? - How long should we flush the system to clear the chemical? • Discovered Concerns - One person job, performed on the wrong shift - Too much chlorine, causing premature component wear - Excessive flushing, causing excessive water consumption - Steps completed out of order, not taking advantage of hold times • Updated Process - 1 person, 30 minutes per cabinet, completed 6 cabinets at a time on midnight shift. - Easier to plan, reduced customer impact with superior customer service, and reduced chemical/water consumption - $24,019 in labor savings, 27,000+ gallons of water saved, 10.2 weeks of additional manpower now available. Case 2: Backflow Preventers • First time in 10+ years we’ve achieved 100% compliance - Result of successful collaboration • Created Excel-based computer model - Comprehensive BFP list with size/mfg./type/location - Automatically elevate outdated units and generated BFP inspection sheet • Refocused labor usage on specific units - Out of 165 units, only 21 call for additional personnel. - Provides 3.6 weeks of additional manpower to other PM categories. - Asset cost savings of $8,418.41. • In 2019… - Grouping units by area to eliminate transportation time - Proactively plan inspection campaigns - Order parts for common mfgs, sizes, and types Priority 2: Performance Metric Reporting • “If strategy is the blueprint for building an organization, metrics are the concrete, wood, drywall, and brick” • Shape human behavior and determine effects on output from strategic changes • Breaks down complex data into easy to understand communications - Analyzes and communicates pertinent information - Areas of greatest potential impact • Benchmarking vs. historic performance • Increased focus, elevate labor inadequacies, highlight potential mismanagement • Monthly performance reports - Personnel Utilization - MISC WO usage - PM Completion Psychological Phenomenon: Surrogation • Metrics are to steer business to a tangible goal by identifying indicators that attribute to success • Working towards satisfying the metric above satisfying the purpose of the metric - Ex. Wells-Fargo incentive-compensation program - Employees opened 3.5 million credit card accounts without customer knowledge to boost their metric performance - $185MIL in fines, $6.1MIL fees, $142MIL in class action lawsuits • Why does it occur: - The actual objective or strategy is complex and relatively abstract. - The metric is concrete and easy to understand. - The person involved does not consciously reject the substitution of the metric for the actual objective or strategy. • How to avoid it: - Design the metric with those who implement strategy - Avoid tying in incentives - Use of multiple metrics Personnel Utilization Report • Reports the utilization level of each individual in each trade • Determines “true” hourly labor cost - Submitted WO hours compared to direct hours from payroll. • “True” manning counts by incorporating indirect labor hours (vacation, PTO, etc) • Labor costs can be used to justify using, or not using, contracted project work. • Ensures our frontline employees are provided with sufficient work each day. Personnel Utilization Report Q:\ Personnel Utilization MISC WO Report • Surrogation-avoidance - Measuring with multiple metrics • Measures the number of labor hours being applied to any work order titled “MISC” (or alike). • Increases accountability to create specific work orders which better justify labor and equipment needs. • Increases visibility of type of work performed, which ensures previous reports are accurate MISC WO Report PM Completion Report • Reports our ability to complete reoccurring JDE assigned PMs • Compares completed WOs against all WOs assigned for the given month • Highlights PMs have not been completed to raise awareness on potential labor inadequacies, mismanagement, or outdated JDE PMs. • Contains a Pareto Chart tab that highlights the top 25 PMs based on monthly hour consumption • Built in Surrogation avoidance PM Completion Report Q:\PM Completion Report Future State • Inversion of reactive vs. preventative WO ratio and development and implementation of predictive maintenance • Condition based maintenance using Internet of Things (IoT) - Sensors…everywhere - Need driven vs. time driven WOs • Mobile WOs through JDE 9.2 - Photos and video - Frontline employee created WOs • Life cycle cost analysis, reduction of maintained assets, and better trade group foundations - Stop spending time on non-critical assets • Results driven expansion of Asset Management - Predictive maintenance - Reduced OT and emergency response StrategicFuture Long Term State Work Order – Integration Enhancements HIGH Financial Financial Benefit Establish to Cost LOW • Predictive Maintenance – Condition-based, monitor for out of tolerance • Preventive Maintenance –Time-based, prevent failures with regular maintenance • Reactive Maintenance – Run to Failure, when it breaks, fix it Commencement Address • Each department influences the overall Maintenance Engineering life cycle • Asset Management is the starting and ending points for critical assets • Process and Industrial Engineering focuses on quality of the lift cycle • Reduction in operational variance is priority #1 to develop performance metric tools • Are we understaffed, or should we be doing more? • People are the most important part of this process • “…the remedy for inefficiency lies in systematic management.” Frederick Taylor , Principles of Scientific Management .

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