Slaying the Backlog Dragon u sing Industry Best Practices

1. Slaying the Backlog Dragon using Industry Best Practices Jan. 29th Monday 1:30pm – 2:15pm Champions V Advanced Concepts in Planning & Scheduling John Reeve, Author, CRL, CMMS Champion

2. Scott Stukel, CMRP Director, Energy/Utilities & Asset ManagementTRM - Total Resource Management • BSME, EE/CE Minors – Kettering University (formerly GMI) • 28 Years of experience in Engineering, Maintenance and Asset Management Practices & Technology • 16 Years of Asset Management & EAM Consulting Experience • Seasoned Asset Management, ISO-55000, IIMM Practitioner and Advisor • Former NASA Deep Space Sr. Engineer & Reliability/RCM Director • Guinness World Record Holder, Engineered Worlds Largest Rice Krispies Treat for Charity/Reality TV Program – 10,314 lbs

3. Asset Management Journey RELIABILITY LEADERs CMMS PRACTITIONERS MX S/W CONSULTANTs COST/SCHED. ANALYSTs

4. Before we start, I’ve got questions What is your role? [going around the room] Do you have Planners in the organization? Do you have Schedulers? Are they the same person/role?What if you have neither?>>> if NO to all of the above…. Do we give up all hope of making a plan? Do we forget about making a Schedule?

5. Planning, Scheduling and Backlog Management Main Topics • All about Backlog • Work Priorities – different techniques • Planning, the “well planned” Work Order • Schedules and Scheduling • Measure and Monitor • Improve work force productivity and job safety --------------------------------------------------------- Question: What exactly is the purpose of an asset management system?

6. Different Types of Backlog Planning Backlog Scheduling Backlog Execution Backlog

7. Maintenance Backlog---Measures the work necessary to prevent the deterioration of an asset or its function that has not been carried out, but has been identified to be done. BACKLOG ACCURACY REVIEWS When reviewing new work requests….a rigorous examination of the work requested needs to be carried out. This will remove duplicate work, finished work, unwanted work and modifications (modifications need to go through the 'management of change' process, modifications need engineering and fiscal approval, a modification is not maintenance work) out of the list. ACCEPTABLE BACKLOG SIZE

8. Categorizing the Backlog • What is maintenance backlog made up of? • Scheduled PM and PdM work • Corrective maintenance • Environmental & Regulatory • HSE related • Project Improvement & Project Support • Admin/Business Support • As Maximo users, we typically group work using the WORKTYPE field. • I use the term “trilogy” to identify 3 critical fields: worktype, priority and status as essential to work management and analytical reporting. That said, it is very important to put a fair amount of thought into this design.

9. Why Categorize Work? • Know if you’re keeping up with incoming & existing backlog • Forecast needed resources; labor, materials, funding (and even justify more resources!) • Identify candidates for focused attention, rehab, or investment Traditionally Backlog has been measured in effort , i.e. weeks, days, hours.. Modern backlog should be measured in effort as well as cost. This topic also gets into defect and deferred maintenance tracking. “Our non-critical work backlog is 3760 work hours” “Our deferred maintenance backlog is $566,700”

10. It is extremely important to Trend Backlog Growth

11. Maintenance Planning ”What do you mean I need to think ahead? I just get the work order,…. go get stuff, and get er done” The Planning step is skipped altogether, ie. Emerg/Urgent Or, this work might be basic enough to just apply basic estimate Or, this work requires formal planning Plannable Work

13. What does a good job plan look like? The level of complexity depends on several factors: The complexity of the task. Tasks which have multiple steps that must be performed in specific sequence, or contain unusual operations, must be spelled out precisely. What specific data is needed to complete the task with repeatable results? Critical numerical data, such as torque values and clearances, specific type of lubricant, or special tools, should always be spelled out and never left to memory. The criticality of the procedure’s outcome. How important is it that the job is done exactly right? As the tolerance for poor outcome or any variation in the outcome decreases, the need for specific detail required to ensure a consistent outcome increases sharply.

14. Maintenance Planning – pieces and parts The “well planned” work order should contain: • Clear description of the work to be done. • Location, Asset, or Cost Center/Charge Code where the work is needed • Priority/work urgency • Work plan steps and craft/material estimates for: • Crafts(s) required and quantity • Hours per craft required + number of staff • Materials/spare parts • Tools or special equipment needed to perform work • Do we capture meter data? or, asset condition? • Safety/hazard, environmental, regulatory requirements • Level of Risk? • Are outside services required? • Asset down required? • Cost estimate, usually derived automatically from work plan Guideline: A well planned work order is crucial to quantifying Backlog! Error Check: No PM-JobPlan records should exist without a craft estimate. Question: How would you setup an Asset for Run-to-Failure?

15. What are the different types of Schedule? Project Schedule Shutdown-Turnaround-Outage Schedule 4-week Look-ahead Weekly Schedule Daily Plan Which type is a best fit for asset/facility maintenance? Unfortunately, many organizations do not create any schedule at all. Why is this?

16. Caution: Sometimes the stakeholders start discussing what scheduling software to purchase before they establish requirements

17. Identify the activities Duration Priority Sequence Determine critical path Apply resource estimates Perform resource leveling Building a Project Schedule

18. This is one idea for work prioritization. You may have a better one.

19. Planner/scheduler Role Planner/Scheduler Activities • Screening– The Scheduler reviews the work plan and makes any necessary modifications to priority, additional estimate details, and/or designation if work will be performed by a specific crew, specialty, or tradesperson. • Buildthe Schedule – Oversee Backlog& 4-Week schedule. • Track schedule adherence • Trend backlog growth [Planner & Scheduler role] • Coordinate with Operations & Facilitate the weekly scheduling meeting. • Support Supervisors/Leads with executing the schedule.

20. Doc Palmer Speaks out on Daily Plan Creation Supervisors should be making a Daily Plan, each day, from the Weekly Schedule Best practice is to have the crew supervisor create daily schedules as the week unfolds. Reason: There is too much churn in the daily execution of maintenance to create the daily schedules a week ahead of time. Therein, the first-line supervisors should create the daily schedules, assign names, coordinate lockout/tagout (LOTO), and deal with new urgent work that cannot wait. Many/some scheduling practitioners and CMMS programs advocate laying out the entire next week in advance, specifying specific days for each work order, as well as technicians and hour slots assigned to them. Their reasoning seems to be that because each work order has a time estimate, the schedule should dictate exactly when the work should be performed for best coordination. [JR} just because the scheduling software permits this type of thing, doesn’t mean you should do it. More Reasons Why 1. Maintenance time estimates are not very accurate for individual work orders. 2. Maintenance is simply not assembly-line work. 3. Further, most plants have a significant amount of new urgent or emergency work.

21. I’ve got Questions What do you do if maintenance does not follow the schedule?! What do you do if the backlog is not accurate, i.e. the Statuses are incorrect? Or priorities are missing? How do you code a job which is on HOLD? If it is on hold, how do you enter remaining hours (as estimate)?

22. What is your Scheduling Process?

23. How do you determine what should be worked on first?If the backlog has 1000 work orderswhat goes on the weekly schedule?

24. Everything may be important but you can’t do everything, everyday. Backlog Management Using a Risk-based Prioritization Matrix

25. Prioritization Matrix – for ranking the open backlog

29. Asset Criticality Ranking – example #1

30. Asset Criticality Ranking – example #2

31. Other considerations for Matrix

32. Benefits of Planning & Scheduling The Business Case for Planning & SchedulingIt’s all about the bottom line… or is it? How do you respond? Simply stated, a 10%increase in productivityfor a 50 tradesperson maintenance organization would yield approximately 9,600 more hours to do work. That’s approximately 5 more tradespersons worth of work output! • Will that enable you to significantly reduce overtime? • What could that do to your backlog? • What initiatives could you undertake? (PM Optimization, Predictive Program, Capital or Special Projects, etc.) • What are the secondary benefits? (operations efficiency, increased equipment availability/throughput)

33. Benefits of Planning & Scheduling The Business Case for Planning & SchedulingIt’s all about the bottom line… or is it? But wait, there’s more… Effective maintenance Planning & Scheduling conservatively results in 10-15% reduction in Inventory Expense. • For an organization that spends $1M per year in maintenance materials, this would yield approximately $100-150K savings annually! • In addition, you can expect to reduce amount of inventory required to be held in the warehouse, resulting in a reduction of carrying and handling costs. Can you afford not to implement effective Planning & Scheduling? Do you know where your backlog is and have a plan to manage it?

34. Path Forward That all sounds great, but how do we get there? Here’s How: • Understand where you are, where you want to go, and what benefits you can expect to achieve. • Develop a workable implementation plan and get management behind it. • Execute your plan. • Train and empower your people. • Measure progress and continuously improve.

35. What should my ratio of supervisor, planner/scheduler, or maintenance engineer to craftsperson be? • Supervisor to Craftspeople 1:10 • Planner/Scheduler to Craftspeople 1:20 • Maintenance Engineer to Craftspeople 1:40

36. Measure your progress to continuously improve • Institute actionable, realistic metrics & KPIs to measure progress and identify needs for focused improvement • “Metrics” is a collective term used to categorize reports, charts, graphs, etc. intended to measure aspects of an organization’s activities and performance • Communicate progress to stakeholders & management and facilitate action • Planning & Scheduling Group plays the key role in making it happen

37. Planning & Scheduling Metrics/KPIs Key Performance Indicators – Work Planning Key Performance Indicators – Work Scheduling * Schedule compliance metric needs to take into account minimum schedule or total availability to discourage schedule manipulation to boost compliance numbers, initially the weekly schedule should leave 10-15% of available time free to handle emergencies or schedule injections

38. Shifting focus to Reliability Something to Remember