Presented by:

1. Communications & Accountabilityare Keys to Condition-Based Maintenance(lessons learned at Eastman Chemicals, Kingsport, TN) Mark Mitchell Forrest Pardue Steve Quillen Dick Hancock Eastman Chemicals 24/7 Systems, Inc Kingsport, TN Knoxville, TN Presented by:

2. Eastman Chemical’s predictive maintenance history Focus on improving communication & use of equipment condition status information by both operations & maintenance personnel Creating ownership & accountability for equipment reliability Using integrated historical condition information to target reliability improvement This presentation discusses: 2

3. Eastman Chemicals – Kingsport, TN site • 20,000 rotating equipment trains • By the mid 1990’s Eastman’s predictive maintenance group was well respected for it’s technical proficiency • Credited with preventing a significant number of production interruptions by catching equipment problems prior to failure • However, Eastman’s management felt there was room to improve. 3

4. Machinery Analysis Performance Testing Negotiation with Operations over need for repair, change in operations, or scheduling Planner / Weekly Meeting Eastman’s early communication structure for condition status informationCondition information not consistently driving appropriate maintenance activity Infrared Thermography Oil Analysis Motor Analysis Vibration Analysis Individual Condition Status Reports Maintenance Contact Maintenance Contact Area Maintenance Crew Equipment Repair Action 4

5. Reports were sent to different maintenance contacts based on technology source Each technology used a different format: Route Vibration: custom report via plant mail IR Thermography: e-mailed PDF file Oil Analysis: e-mailed PDF file Motor Analysis: e-mailed custom report Machine Analysis: e-mailed document Performance Testing: e-mailed excel file Eastman Chemicals - 1998distribution of condition status reports 5

6. Not sure who was supposed to ‘carry the ball’ for condition-based maintenance follow up Limited distribution & non-standardized formats meant no single person knew everything about a developing machine problem Management had poor visibility of reliability issues – accountability was ‘after the fact’ when operations complained PDM teams were ‘doing their job’, but not generating the expected benefits of Condition-Based Maintenance Fragmented communications lead to ‘dropped balls’ 6

7. Many Data Sources + Many Recipients + Many Delivery Channels Result: Poor Communication Lack of Action Maintenance & Reliability • Manager • Planners • Mechanical Supervisors • Electrical Supervisors • Technicians • Engineers • PDM Program Manager Verbal Plant & Operations Managers V-mail E-mail Plant PDM Teams or PDM Contractors Vibration Analysis Oil Analysis Motor Testing Infrared Thermography Ultrasonic Survey Visual Inspection 7

8. Create an effective system (kiss) for communicating machinery health status Integrate all equipment condition status information Hold both operations & maintenance employees accountable for follow-up actions & results Analyze overall reliability patterns to identify chronic problems & plan improvement Keys to taking PDM to Condition-Based Maintenance 8

9. Machinery Analysis Performance Testing Eastman’s modified communication structure for condition status informationCondition information now a consistent driver of maintenance activity Infrared Thermography Oil Analysis Motor Analysis Vibration Analysis Integrated Condition Status Report (Web based) Operations & Maintenance Managers Plant Manager Single Maintenance Contact for an Operating Area Maintenance Planner WO Backlog from SAP Monday AM – Weekly Planning Meeting Area Maintenance Crew Equipment Repair Action 9

10. Many PDM analysts can document results from different technologies – including outside service contractors. A single database can ‘force’ consistency in equipment names & fault descriptions Plant personnel (including managers) can retrieve status information through their web-browser, without having to install special software Today’s web-hosted database technology makes it practical 10

11. Integrated Condition Status Report • Accessible via web browser; no special software to install & maintain • Dynamically generated for user’s area of interest • Problems displayed in order of severity • All technologies reporting on a machine are shown • Status-at-a-glance for condition based work 11

12. Details by technology source • Concise findings & recommendations • Linked documents for technical details • Work order reference • Check-off notification to indicate work has been completed 12

13. Handling the standardization issue • Make results documentation easy for the analysts – don’t make extra work • Force the use of standard location names, equipment faults, & severity scale with drop-down lists • Also force concise description of findings & recommendations • Let the formatting of results reporting happen dynamically ‘behind the scenes’ 13

14. Present one simple screen to analysts from all technologies, for concise findings & recommendations Make results documentation quick & easy for analysts 14

15. Distributing the information to abroad plant audience • Only present information for each user’s area of interest – don’t create data overload • Make it easy to retrieve via web-browser, without requiring installation & maintenance of special software • Update the information dynamically, including the status of condition-based work requests 15

16. Integrated Condition Status Report for the area is actively used to discuss old & new condition issues Work status review & prioritization is the output Area operations & maintenance are jointly accountable for equipment reliability Eastman’s weekly planning meeting is the focal point where area operations and maintenance work together to prioritize activity - that’s culture change! 16

17. Holding plant personnel accountable for condition-based maintenance results • For equipment with health issues being reported, are timely maintenance responses happening? • Is condition history being kept & analyzed to spot repetitive reliability issues? “What gets measured, gets done” 17

18. Integrated Condition Status Report • Shows how long condition entries have been open, awaiting work completion • Shows how many condition entries have work orders opened • Shows assets where all condition entries have had work completed and are awaiting confirmation by condition monitoring 18

19. Eastman Chemical customized report: Response to condition based work requests • Eastman Chemicals in 2004: • 91% of vibration reported problems were resolved through August 19

20. Track & analyze timely response by operating area • Circulated monthly to area managers • Monitors use of PDM info by work crews • Key tool for PDM techs to gauge response to their information 20

21. Eastman Chemicals – Kingsport, TN2005 • Accountability is consistently based on condition status and work execution rather than informal complaints from operations 21

22. Use of historical condition information • Identify chronic failure issues & target reliability improvement initiatives • Change work procedures and justify special training & tools • Fine-tune condition monitoring activities 22

23. Using condition history to spot reliability gaps • Reduction gearboxes quickly stand out with the highest number of faults • Drilling into the report would uncover filter design and lubrication issues as common denominators behind the gearbox faults • Eastman has significantly reduced chronic equipment problems such as imbalance, misalignment, lubrication, and installation issues by using historical failure mode information to change procedures and justify special training and tools 23

24. Using history to adjust vibration monitoring activity • Finds as % of total monitored components • Generally accepted: • 10% at start of program • 5% 6 to 8 years into program • 3% after 10 years • Eastman’s experience: • 4% 10 years ago • Now at 2 ½% • Created opportunity to: • Adjust routine vibration monitoring on less critical equipment from monthly to every other month or quarterly • Reassign manpower from routine vibration analysis to higher value root cause analysis projects 24

25. Summary of Results at Eastman Chemicals • Follow-up of predictive maintenance calls now consistently tracked • Basic maintenance problems related to installation, imbalance, and misalignment practically eliminated • Maintenance budget & personnel count reduced while production capacity slightly increased • Operating area ‘bosses’ know and care about what’s happening with equipment reliability 25

26. A key player in Eastman Chemical’s Condition-Based Maintenance progression: Single database for integrating equipment condition status and distributing that information to a wide audience 26