Babcock International Group:
In Brief
Annual Revenue over
$6 billion
Headquartered inLondon
Delivering circa600
services across six continents Employing a workforce of c.26,000
skilled personnel The UK’sleading
engineering support services organisation Order book circa$26 billion
Managing customer assets currently worth over
$81 billion
Established in
1891
FTSE 100
company listed on London Stock Exchange
Delivering complex and critical
support services around the globe
Teaching Vital
Skills
Managing Critical
Assets
Delivering Complex
Providing critical international support
to our customers’ operations
Bulgaria: Power Design
USA:
Mining & Construction Canada: Nuclear and Mining & Construction
Japan: Nuclear Design & Support
Australia: Asset Management France: Nuclear and
Mining & Construction
Babcock also supports the BBC’s shortwave transmitter stations around the world:
Middle East: Aviation Support
South Africa: Power Generation, Transmission
Managing an asset base of over $81bn
Babcock Manages over 30,000 mobile assets
Babcock manages over
176,000 equipment stock lines
The Babcock Value Proposition
Re
•
Financial Savings
•
Operational Improvements
•
Transfer of Risk
•
Core Business Focus
•
Release of Capital
•
Catalyst For Change
•
Aligned KPI’s
The Babcock Value
Proposition
• Focus is on “Extraction / production tonnage” • Actual volume of assets often unknown
• Various equipment specification policies • Poorly measured asset utilization
• Inability to measure asset performance • Lethargic maintenance supply chain • Poor daily / weekly check regimes • Reactive maintenance culture
• Unlikely to measure true “Whole Life Cost”
• “Entrenched complacency in reporting fleet availability”
• “80% availability reported, but only 38% utilisation achieved”
• “Operational delays accounted for 32%”
• “Unproductive working hours accounted for 20%”
You can’t manage something if you don’t measure it….
....honestly!
The journey to asset management
maturity
Fleet categorization
Criticality 1
Front line critical equipment
Criticality 2
Periodic usage equipment
Criticality 3
Fleet Selection Protocol (FSP)
• The current OEM market place provides an ever greater choice
• Understanding the full business requirements is key
• A matrix management approach can deliver the right assets whilst ensuring lowest whole life costs
• The Fleet Selection Protocol is just the first stage in ALCAMiE™
Fleet optimization
Core operational fleet
Used to meet operational peaks
Covering planned maintenance
Covering accidents & damage
Available for transfer / disposal
Core Fleet
Seasonal Peak Fleet
Maintenance Float
Accident Float
Optimizing maintenance costs
• Standardise fleet specifications
• Standardise maintenance regimes
• Group and combine maintenance tasks
• Establish “standard times” for maintenance
• Plan maintenance re-builds to prevent technical failures
Condition monitoring
• Pro-active machine health monitoring • Collection of key data
• Performance strategy delivered through:
‒ Equipment maintenance history
‒ Use equipment data (telemetry)
‒ Measure fuel burn, idle time, bucket/skip loading
‒ Carryout and use “Fluid Analysis” reports
‒ Professional review of defect trend data and inspection reports
Supply chain performance
• Supplier Selection:
‒ Technical and logistical capability
‒ Price
‒ Quality
‒ Health, Safety & Environmental credentials • Performance Management:
– Management review and reporting
– Service Level Agreements (SLAs)
– Supply chain audits
Performance KPI’s • Adherence to Agreed Terms
• Maintenance Schedule Adherence • Calibration and Certification
• Quality of Documentation • Documentation Receipt • Customer Feedback
Continuous Improvement Culture
Objectives
• Failure prevention
• Lower operational cost base • Improve equipment performance
Outputs
• Drive OEM specification changes
• Reduces equipment “Whole Life Cost”
Optimizing systems & data
• Use or develop a suitable asset management system
• Measure:
– True asset ‘utilization’ (hours / miles)
– True ‘downtime’
– Actual maintenance spend v planned spend
– Warranty recovery rates
Management reporting
• Tailor incident management software • One safe source
• Monitor response times • Proactive alarms • Custom reports Internal - Resource optimisation - Activity prioritisation External - Customer reporting - Supplier reporting
What you can achieve….
• Increased Fleet Availability
• Machine Performance Management
• Supplier Management
• Procurement Leverage
Example achievements
British Airways
• Maintain and manage 4,000 specialist vehicles • Reduced fleet size by 15% in first 18 months
• Reduced overall cost contract year on year by 16%
Lafarge
• Availability contract covering UK / North America & Canada
Ministry of Defence – Construction Vehicles
• Supply, manage & support 2,500 Army Construction vehicles • Reduced fleet size by 25%