Cost of Reliability

Last week we had the opportunity to view the first five of the top 10 signs that you are Maintenance & Reliability Best Practices by Ramesh Gulati. I hope you were able to compare your operation to the first five and see where you are excelling and where you may have challenges.

Those first five focus on the specific work streams in Reliability & Maintenance. These next five are a combination of the main work streams and the foundations to a successful operation.

  1. CAPEX Management: All new equipment has detailed specifications including Reliability and Maintainability requirements. The design has gone through various reviews, to optimize the design as much as possible. The Life Cycle Costs of the equipment have been determined. Lastly, the equipment, its data and its proactive work are all in the CMMS prior to the start-up of it.
  2. CMMS: The data in the CMMS is clean due to the existence of Master Data Standards. These ensure that all equipment, materials, failures, etc. are recorded with all of the required information. The roles within the CMMS are clearly defined, and a custom user guide exists.
  3. Performance Management: KPIs and process metrics are clearly visible, and understood by all. All sub target performance is discussed, Root Cause Analysis conducted and improvements tracked. Managers are having the tough conversations with people who are not performing. Everyone is working to a standard, and there is an environment of continuous improvement.
  4. Organizational Management: There are defined Roles & Responsibilities, with a succession plan for each role. The operation is physically organized using the 5s methodology. All changes in the operation are made following a change management process to ensure sustainability.
  5. Business R&M Strategy: In order to support the business, we have to know what the business requires and where the market is going. We do not want to invest the money to achieve 97% availability if the business only requires and expects 80% availability. Once we have this, all budgets should be built using the Zero Base Budgeting Method. Safety is paramount and a requirement to be successful

This list is not all encompassing, but does touch on all of the major points. It also serves as an introduction to our framework, which is a core part of the Eruditio, LLC Model (HPRM).

Remember, to find success, you must first solve the problem, then achieve the implementation of the solution, and finally sustain winning results. Does your R&M Strategy match what your business requires? Will it meet the requirements for a profitable business or does it introduce excessive costs due to downtime or over availability?

I’m James Kovacevic
Eruditio, LLC
Where Education Meets Application

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”