Maintenance management framework

Maintenance forms one part of the asset life cycle; it is one step in a nine step asset management process described in Fig. 3.1. Asset management begins by asking why the asset is required and how it relates to the business plan. The business plan includes the purpose, function and standards of performance. The life cycle involves comparing cost to benefit and can be listed as an investment option by most companies. From the time of procurement, the asset has disposal or replacement value; there are several steps or processes that need to take place to ensure that the equipment life cycle is preserved and prolonged.

Fig. 3.1 Illustration showing stages in Asset life cycle. (Source: Uptime strategies for maintenance management 2000: 4).

The benefits of asset management requires the involvement of all departments from maintenance, operations, engineering, finance, design and any other relevant departments. The maintenance framework aims to maximise the production rate of a particular equipment or asset while increasing its productive capacity and eliminating wastage by reducing the inventory or procurement cycle.

Maintenance objectives are the foundation of maintenance vision and should outline the annual plans and budgets of the department. The first step in developing maintenance plans and budgeting processes is to understand the current condition of an asset. A typical maintenance objective would include the following:

 To align the maintenance management process with a focus on pro-active and planned corrective maintenance.

 To develop short- , medium- and long-term maintenance planning.

 To train and develop employees in line with their job requirements, career progression and attrition rate.

 To implement maintenance management systems to assist with work and resource management.

Evaluating the current condition and processes enables the maintenance person to develop and implement correct maintenance tactics by understanding the weaknesses and strengths of the current process. The evaluation and assessment could take the form of a questionnaire, process evaluation through observation or structured interviews. The assessment of equipment status and condition is done through condition monitoring, equipment performance analysis and normal periodic checks. These results will assist in developing the asset improvement plan.

3.3 Developing AMP

The development of an asset maintenance plan (AMP) needs to be classified into different stages with targets, basic requirements and objectives at each stage. Table 3.1 shows a three-stage initial process of developing the asset management plan.

Table 3.1 Stages in the Development of an Asset Management Plan:

Stage: Target: Requirements:

Set up how the register will be managed Capturing of data

Determine the target levels of service required

Table 3.1 provides the fundamental requirements for the developmental phase of the asset management. This is the foundation of asset management and if not developed correctly, the physical asset management will be incomplete or incorrect. The second phase of asset management development covers the implementation and monitoring. Table 3.2 summarises the stages, targets and requirements.

Table 3.2 Implementation and monitoring phase of asset management

Stage: Target: Requirements:

Stage 4 Asset improvement/upgrade plan Maintenance procedures

Decision and process flow

Failure analysis

Stage 5 Techniques required Risk analysis

Identify where equipment is in its life cycle

Develop plan for replacement

Decision making based on life stage and budgets

Stage 6 Management system Performance management

Performance evaluation

3.4 Strategy development

The development of a maintenance plan for an existing asset will be based on best practices and the current state of the equipment. This should highlight the objective, the asset requirement and the current analysis of an asset.

3.4.3 Status analysis

The status of the equipment can be measured by performing an equipment survey, performance analysis and feedback process from a data registry. Information can also be collected from user feedback and surveys, and the age and condition of the equipment. The status of the equipment should be based on the types of problems or failures.

3.4.4 Asset management objectives

The objective of asset management is to develop and create a system that will ensure optimum utilisation of an asset or infrastructure. This can be achieved by implementing the best practices that will ensure that:

 Asset requirements and asset management strategies are driven by defined service levels and performance standards.

 Life cycle approach is used when determining asset maintenance, operations, design and renewal strategies.

 Proper management and correct allocation of financial resources should optimise the investment in infrastructure.

Asset management is not a fixed process but evolves as the condition of operation and infrastructure status changes over time. This ensures that the equipment delivers as expected.

The objectives assist the asset owners during decision-making processes with regards to the condition of the asset so that changes can be implemented for corrective measures when required.

3.4.5 Asset data classification

Asset classification is done to ensure a common understanding between all asset users. The first step is to define the asset or equipment and classify it. There is always a debate between finance and maintenance staff on exactly what an asset is and this impacts on the depreciation or capitalisation of the asset or equipment.

The asset must be classified into different classes and sub-classes with each class having a class code and sub-class with sub-class codes. This simplifies the operation when one needs to investigate and report on both a horizontal and vertical basis and when there is a need to check similar classes of equipment through the organization or within a particular area. Table 3.3 indicates the different classes that can be used to classify assets:

Table 3.3 Classification of asset on the system for horizontal and vertical identification

Number Class Class Code Sub – Class

Sub - Class Code

1 BLOWERS BLR Blower-centrifugal fan type. BLR01

Blower-roots type,

Once the analysis has been completed, the condition of all the assets and equipment confirmed, the database created, and the data prioritized in terms of asset classes the next stage may commence. The data is prioritized to ensure that maintenance interventions are correctly developed and are based on the current condition of the asset and the performance requirements.

This also ensures the proper utilization of resources.

3.5 Asset register

Asset register is a record of asset information considered worthy of separate identification including inventory, history, technical and financial information (IIMM 2006 Version 3: xii).

3.5.1 Asset register set up

The basic requirement for implementation of PAM is that the company must have a correct asset register reflecting all assets for the company. The asset register provides the functional location of an asset. This functional location describes where the asset is or installed in a hierarchical format with its attributes (make, model, size etc). The register will also have the serial numbers of the equipment to identify them during maintenance or when they are sent for repairs.

A properly developed asset register simplifies the process of developing historical information of the asset and recording all the repair costs and usage data. This will assist maintenance personnel

to ascertain the time it has been running and what type of maintenance is required at any particular time.

3.5.2 Managing asset register

The management of an asset register is an important function within the business. It ensures the integrity of the asset database and if there is one central control point that nobody tampers with the asset database. An authorized person should control the process of registering or removing an asset as well as updating the master data.

3.5.3 Data capturing

To ensure that the master data is updated, the person in charge of the asset register needs to develop a process flow that will be known throughout the company so that everybody is aware of the process. It will highlight the flow of responsibility from the time a new asset is purchased. The data entry person is authorised to remove or scrap an asset when necessary.

3.5.4 Replacement programme and costing

Accurate information of the asset‟s condition, usage and expected life will enable the planning section to estimate a replacement period and cost of the asset. The basis for the correct replacement programme needs to be developed by the maintenance and replacement section.

This will depend on the accuracy and the integrity of the master data.

3.5.5 Provisional asset management plans

The information gathered so far will enable planning for the basic maintenance and replacement of an asset. The available status of an asset will include the current usage and expected life span of the equipment. This will enable the development of an infrastructure maintenance programme showing required maintenance frequency and the type of repairs. Although it is difficult to estimate accurately the cost of maintenance, which includes the labour and material costs, estimated costs can be calculated for planning purposes.

For efficiency, the provisional asset management plan must contain information that will assist in decision-making and the planning process for repair or replacement. The following information must be included:

 Labour- all wages and benefits of the traders and assistants.

 Materials- all the supplies, parts, components, consumables and other vital items that will be required by the maintenance personnel.

 Services- engineering workshops, facilities and stores or warehouses where equipment can be stored or repaired.

 Technical support- supervision, planning, materials coordination, administrative support and data capturing.

 Outside services- all contracted services, specialty services, training and consultants that maybe required.

 Functional location and equipment cost.

3.6 PAM development

3.6.1 Attributes

The structuring of attributes follows a pre determined pattern that puts them into hierarchical structures with functional locations and equipment registers, the next step is to group them into classes of assets. In each class, the attributes of the assets such as model, size, capacity, maintenance intervals, serial numbers and date commissioned are indicated. This information is crucial in developing the schedules that meets the asset requirement and performance expectation. The performance of the asset is measured against these attributes.

3.6.2 Basic conditions assessments

The condition of the class of assets must be established and the basic assessments can be classified as poor, satisfactory or good. The condition establishes the basic step in developing the asset plans. A poor rating would indicate that the asset requires immediate remedial attention. An asset that is rated satisfactory will require normal routine maintenance, while an asset in good condition will require routine maintenance exceeding the service level required.

3.6.3 Prioritization based on condition

After establishing the classes and condition of the assets it is necessary to develop different categories of interventions based on their condition. Internationally recognized standards that classify maintenance tactics into three categories of maintenance services, A, B or C will be utilised. The different service levels depend on the usage, intervals, duration of service and the activities that need to be performed for each category.

3.6.4 Critical asset identification

Identification of the critical assets minimises delays during asset malfunction and speeds up the replacement process. The lead-time for most of the assets is very long and the procurement process can increase that lead-time due to delays in ensuring that all approval processes are followed. Classifying critical items minimises the delays and assists the maintenance personnel in identifying all assets that have an impact on service delivery when malfunction occurs.

3.6.5 Maintenance history data collection

The work order system which involves all the activities including the type of work and resources required, functional location and the cost for the work are logged to create historical data for the asset. The history makes it easier to analyse the performance and introduce the required maintenance intervention for an asset.

The first step in historical data collection is to assess the initial condition and examine owner manuals. Once the provisional maintenance plans have been executed, the data is logged into the system to create historical data.

3.6.6 The next generation maintenance plan

Once the provisional maintenance plans are carried out, asset classes grouped, basic condition assessment carried out, and all the data logged into the system, the next step is to use all that information including the historical data to develop a proper asset maintenance plans. The plan will represent the base-line for creating the maturity target profile for the asset, asset classification, critical analysis and maintenance tactics.

3.6.7 Document for decision making

The asset maintenance plan is a definite requirement for decision making processes in asset management. When the asset malfunctions a decision needs to be made as to whether the cost of repairs is justified. The replacement cost must be evaluated against the renewal cost. This decision making process includes the cost benefit analysis which can be achieved by looking at the condition, cost and history of an asset.

The PAM strategy for asset management requires that enough information on an asset be available for decision-making. Lack of data makes this process difficult. Provisional maintenance may be recommended based on the initial condition of an asset.

3.6.8 Determining the target level of service

The target service level provides an idea of the required level expected from an asset. If the level of service is not satisfactory a decision needs to be made whether to alter the maintenance intervention or to replace the asset. It is important to determine whether an asset that will be measured against performance meets the required level; measurement against the set of standards will determine whether a replacement or renewal is required.

3.7 PAM implementation and monitoring

3.7.1 Maintenance procedures

The success of the PAM strategies depends on correct implementation and monitoring. This includes developing proper procedures to be followed by the technical and operations personnel.

Best practices must be implemented and the operators must ensure that the equipment is well

operated. The safe working procedures ensure that there is a common understanding between the different departments .Newly appointed personnel must understand how the equipment operates to reduce maintenance costs. Figure 3.2 indicates the relationship between the departments involved in asset management.

Fig. 3.2 The relationship between maintenance and operations

The maintenance plan includes the tasks and its key activities. Planning and scheduling includes identification, prioritization, materials, labour/skills required, safety considerations, execution and reporting. The maintenance plan also includes the estimated time required to complete certain tasks for optimum performance.

The objective of asset management is to create a programme that is effectively planned and scheduled to reduce labour and downtime. When a malfunction occurs, the programme will ensure that the correct parts and materials are used and that the work quality is higher than that of an unplanned one (John Campbell 2000).

The key steps in maintenance work starts with identifying what has to be done and ends with analysing the results of what has been done. The six steps are shown in Fig 3.3:

 Identify- the need for maintenance work from a simple noisy bearing to the complexities of interpreting a vibration analysis and trends. The probability of identifying the real problem before it becomes serious increases from simple inspection to complex analysis.

Management

Maintenance

Operation

 Plan- this step ensures that all the resources necessary to execute the job are accounted for. The planning personnel determine what has to be done, the resources required and the sequence of activities required for safe working procedures. The planner must be a technically orientated person who is able to determine the sequence of events to complete the activity, including the estimation of required time.

 Schedule- to schedule the work, the planner needs to know who is available, what resources and material will be required and the availability of the resources. It is important to have knowledge of which jobs are mandatory, the procurement system and the lead-time for procurement of various materials.

 Assign- the assignment of the task depends on the maintenance policy and the process in place for prioritizing work. The maintenance system will schedule and assign job cards with details of activities to relevant teams for execution. The job card system makes it easier to track the progress and re-schedule the work.

 Execute- the maintenance process is a revolving one and the execution is the easiest part if the initial steps are followed correctly. When the work scheduled on the job card is completed the information is captured by the data capturer.

 Analyse- the information captured from the job card for completed work is entered back into the system. It becomes the history of an asset and is analysed for further action if required.

This analysis can estimate the life span and expected problems of an asset to implement further maintenance activities and performance analysis.

Fig. 3.3 Maintenance analysis process (Source: Campbell 1995:46)

3.7.2 Work order systems

Two types of work order systems are currently being used by different companies. One is paper driven and the other is computer driven. A typical work order will include the originator, the planner, the supervisor, accounting officer, the scheduler, production and the tradesman. The work order will have a number for referencing and audit purposes. The benefits derived from a work order system are:

 Planning and scheduling mechanisms for complex jobs.

 Cost collection mechanism for labour, stores requisitions, purchase orders and services to charge against a piece of equipment or cost centre.

 Way to capture delays and measure productivity.

 Tool to manage and determine work backlogs.

 Assist to manage equipment history and to analyse the failures and effectiveness of maintenance efforts.

3.7.3 Creating a job card

An example of how a work order or job card is created and the process of creating a work order on the maintenance system are shown in Fig. 3.4 and 3.5.

A job card is created and then work details are entered into the system and saved.

How to create a job card:

On your work order screen, click on ; a blank job card screen will open, with the following available job number.

Fig 3.4 Required information on a job card (Source: ERWAT On key system 2009: 4)

All dates will default to the current date. The date for completion of the work will be indicated.

Click on to open the asset tree, select the relevant asset.

Type in the work required, select the type of work.

The GL code and cost centre code are linked to the asset and will change accordingly. However, please check if it should be mechanical or electrical, as they differ.

Add the responsible trade (click to see which trades are available), select staff member and select work order importance (1 – most important, 4 least important)

Click to save job card.

Job card – labour required tab

Use the labour required tab to view the labour requirements for each task and assign labour resources to the job request, together with estimate time durations and dates.

Note!

● The section and trade are mandatory but the staff member can be assigned at a later stage.

● If a staff member is assigned before the section and trade, then the section and trade are populated with the staff member‟s section and trade.

● If the section and trade are assigned before the staff members, then the staff members assigned

● If the section and trade are assigned before the staff members, then the staff members assigned

In document PHYSICAL ASSET MANAGEMENT (Page 30-127)