Role of Strategic Maintenance Management in Plant Profitability by

1. Role of Strategic Maintenance Management in Plant Profitability by Professor Salih O. Duffuaa Systems Engineering Department King Fahd University of Petroleum and Minerals

2. Salih Duffuaa • Dr. Duffuaa is a Professor of Industrial and Systems Engineering at the Department of Systems Engineering at King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia. He received his PhD in Operations Research from the University of Texas at Austin, USA. His research interests are in the areas of Operations research, Optimization, quality control, process improvement and maintenance engineering and management. • He teaches course in the areas of Statistics, Quality control, Production and inventory control, Maintenance and reliability engineering and Operations Management. He consulted to industry on maintenance , quality control and facility planning. He authored a book on maintenance planning and control published by John Wiley and Sons and edited a book on maintenance optimization and control. He is the Editor of the Journal of Quality in Maintenance Engineering, published by Emerald in the United Kingdom.

3. Objective of the Presentation • Maintenance Role • Strategic Maintenance Management. • Strategic maintenance decision. • Capacity planning decisions and issues. • Measuring the performance of your strategic maintenance management on plant profitability • Conclusions and further research.

4. Maintenance Data • 100 billion spent annually on maintenance in the USA. • Downtime costs as much as $ 50,000 per hour. • 30-40% of downtime is caused by poor design or maintenance. • 18% of maintenance work unnecessary.

5. Introduction • Maintenance Systems are critical to organizations in order to meet their goals and objectives. • Maintenance can be used to provide competitive advantages. • Maintenance management has evolved over time. Now days concepts such as strategic maintenance management are emerging.

6. Evolution of Maintenance Management • Prior to 50th: Necessary evil • 50-70 : Preventive maintenance • 70th : Life cycle costing, RCM and Productive maintenance. • 80 : TPM an RCM • 9oth-date: Strategic view of maintenance

7. Introduction

8. Role of Maintenance • Organization objectives • Profitability. • Return on investment (ROI). • Customer service. • Safety and environment • Cost. • Community development.

9. Role of Maintenance • Maintenance has a high impact on business profitability, through its impact on • Equipment capacity • Availability (A) • Rate (R) • Product quality (QR) • Safety • Health and the environment • Cost of production.

10. Quantification of the Impact • Maintenance provide productive capacity (PC). • Productive capacity is a function of utilization and over all equipment effectiveness (OEE). • OEE = A * R * QR • PC = U * OEE where : U is utilization

11. Strategic Maintenance Objectives • Maximize Availability • Ensure equipment are operating at full capacity (rate) • Integrate and continuously improve all elements to ensure the best quality rate. • Improve equipment utilization.

12. Strategic Maintenance Strategic maintenance has three dimensions • Managerial dimension • Technical Dimension • Operational • Commercial or economic

13. Operational Strategy • Implementation • Production scheduling • Spare parts inventory • Keeping with technology • Developing competencies

14. Commercial Economics Implementation • Sales and marketing. • Production costs. • Maintenance costs

15. Managerial Dimension Implementation • Aligning maintenance objectives with organizational objectives. • Performance evaluation • Human resources capacity

16. Technical Dimension • Functional requirements • Design upgrade • Maintaibility requirement

17. Maintainability requirement • Knowledge about system and plant condition • Technical know how • Data base • Inspection • Monitoring. • Selection optimal mix of maintenance polices • Predictive • Preventive • Reactive

18. Predictive Approach (PA) Characteristics • Maintenance performed at needed time. • Asses probability of failure • Technology based. • Advantage • Lower costs • Extend equipment life cycle • Assist in identifying root cause • Disadvantage • Requires investment • Requires additional skills

19. Preventive Approach (PA) Characteristics • Time based. • Forecast and prepares for planned down time. • Advantage • Improves resource planning • Reduces down time • Control budget • Disadvantage • Activities performed regardless of need. • Possibility of statistical and human errors.

20. Reactive Approach (PA) • Characteristics • Run to failure. • NO routine tasks performed. • Advantage • Do not spend money unless you have to. • Disadvantage • Most expensive approach. • Less availability • Longer down time. • Higher capital costs.

21. Planning Strategic Approach • Planning predictive strategy • Creative a proactive culture, long term commitment and accountability. • Ensure availability of skills and knowledge • Continuously review new technologies. • Planning preventive strategy • Ensure availability of skills and knowledge • Availability of reliability data

22. Planning Strategic Approach • Planning reactive strategy • Establish service providers. • Procedure to limit down time. • Effective inventory management.

23. Capacity planning decisions • The deployment of the strategy requires providing the right capacity that include qualified personnel, tools and equipment. • The competencies needed. • The organization and support.

24. Continuous Assessment • Goals and targets. • Performance measurements • OEE • Productive capacity • ROI • Cost • Technology adaptation • Learning and development • Action plans

25. Mission • The mission of the CEIM is to serve and support organizations to develop and improve their maintenance systems to the best quality standards: and enhance the educational process for students and faculty by providing opportunities for quality research and projects.

26. Vision • The vision for CEIM is to be the leading center in maintenance management and engineering in the region and a first class source of knowledge and information in the area of maintenance globally.

27. Objectives The CEIM mission shall be accomplished by pursuing the following objectives: • High-quality industrial projects and training : Conduct projects and relevant training programs in the area of maintenance for industry that meet or exceed their expectations. • Excellence in basic and applied research: Conduct original and high-quality basic and applied research at the frontier of the area of maintenance.

28. Objectives • Enhance the educational process for students: Assist students in conducting their master's theses, senior projects and co-op training programs through effective links with industry.

29. Opportunities • Create partnerships and cooperate with industry through industrial membership program of the Center. • Serve industry in an efficient manner. • Offer well-guided training programs. • Link industry in the Kingdom with international centers in the area of maintenance.

30. Opportunities • Advance research and applications in the area of maintenance. • Focus on inter-disciplinary research. • Enhance students’ learning experience

31. Center Programs and Activities • High-quality industrial projects. • Training programs. • Industrial consultations. • Certification programs. • Workshops and seminars

32. Center Programs and Activities • Link with international experts and centers. • Faculty mentoring and team-working • Create opportunity for student projects. • Multi-disciplinary research. • Industry open house.

33. Resources • Experienced faculty and staff. • Graduate Students. • Laboratories and software. • Agreement with international centers in the area.

34. International Collaboration • The center will establish agreements with international centers. Already contacts started with: • University of Toronto • MIRCE • University of Salford. • Queensland University in Australia

35. Thank you for listening Questions or comments are welcomed.