Management and Organization - University of …

1 11 Management and Organization2 Management and Organization Leadership Business Plan Fit Vision, Mission, Policies and Objectives Strategic Plan Measurable Goals Resourced Action Plans Communication Organization of the M&R Function Implementation Process23 Leadership Change the way Management views the role of maintenance Cost center vs. profit center ( giving responsibility and accountability forcontributing to the overall profitability of the corporation) Attitudes toward maintenance are shown by the way it is treated when itcomes to dedicating resources (proper tools, proper locations, consultation onpurchasing equipment decisions, and incentives to work) Change how maintenance perceives its role From repairing and maintaining ( reactive, fire-fighting mode) to preventingthe need for maintenance (proactive, fix-it-right-the-first-time approach); froma repair culture to asset Management culture.

2 Work with design engineers to design-it-right-the-first-time 4 Maintenance as a Business Center Positioning Maintenance as a business center within the plant Recognizing and measuring impact on product quality, delivery, and plantprofitability Developing new measures of functional performance Re-organizing the maintenance function to provide accountability andresponsibility for achieving these new levels of performance Strategically investing in new maintenance technologies as the tools of change35 Role of MaintenanceWhat is the role of maintenance and reliability operations in Management spolicy and goals for manufacturing competitiveness? Management s policies include: Product quality Flexible manufacturing for time-based competitiveness Schedule stability Inventory and materials performance Overall cost leadership To achieve world-class maintenance if any of the above is to be world-class.

3 Schonberger s WCM consists of JIT, TQC, TPM, and EI In order for any of the above to be world class, then asset reliability mustalso be world of Expectations in Maintenance2000 Third generation Higher plant availability & reliability1 9 9 0 Greater safety Better product quality No damage to the environment1 9 8 0 Longer equipment life Greater cost effectiveness1970 Second generation Higher plant availability1 9 6 0 Longer equipment life Lower costs1950 First generation Fix it when broke1940 Year47 Asset environmentBusiness StrategyGlobal Objectives for PlantEngineering and MaintenanceCurrent StatusPerformance GapVisionPerformance DriversMission, MandateGuiding PrinciplesTacticsConceptsOrganizationArr angementsEducation,TrainingSystems,Proce duresMethods,ToolsMaintenanceStrategy ModelSource: Uptime, Productivity Press8 Current Status Assess thoroughly the strengths and weaknesses of the present system andwhich areas should head the list for improvements Diagnostic must be a clear roadmap of the next step to achieve the vision Diagnostic should cover strategic, procedural, technical, administrative, andcultural issues Diagnostic may be performed by an outside consultant or in-house by a self-administered Status Major areas of this review are.

4 Business characteristics maintenance environment and strategy Organization arrangements and human resource Management maintenance administration planning scheduling and work order Management preventive and predictive maintenance purchasing storage and inventory control performance measurement and customer satisfaction automation and information technology. Each response is scored and results can be plotted using a histogram or aBell-Mason type spider diagram10010203040506070 Maintenance Self-Assessment ResultsI. MaintenanceII. Organization andAdministrationIII. Work OrderSystemIV. PM and PdMV. PerformanceMonitoring andReportingVI. Stores andPurchasingVII.

5 Cost ControlVIII. Safety &HousekeepingIX. MaintenanceEngineeringX. Training6112040608010020406080100 MaintenanceStrategy and PlanManagement andOrganizationReliabilityEngineeringMai ntenance andRepairHuman ResourcesIntegrated SupportServicesPerformanceManagementBusi ness PerspectiveMaintenance Self-Assessment Results12 Develop the Vision The vision is a dream of what the company wants to be The intent is to develop a reliability improvement plan to move the organizationfrom the current reality to the vision Main goals must be based on the overall business plan maintenance goals should be integrated into the business plan, otherwisemaintenance improvement remains just another tactic that can be jettisoned atthe first sign of need for cost reductions Benchmarking can be used as a tool to understand what are best practices Those involved for achieving the vision should be involved in the maintenanceplan713 Closing the Gap, PlanningImplementationDevise a plan which considers.

6 The task and its key activities The priority of the initiative, relative to others Estimated resources and level of effort required The champion or person/team responsible for ensuring successful completion The start date, completion date, and the milestones along the way The goals to be achieved on successful completion, and the performancemeasures used to control progress14 Mission of the Maintenance Function Is a primary benchmark for effective staff decision-making Covers the issues of customer orientation, continuous improvement,quality, safety, environmental position, employe e development,downtime, proactive stance, etc. Example of a mission statement: To maintain assets to meet customers needs cost effec tively; tocontinuously improve skills and processes to optimize asset life, usingbest-fit models and technologies.

7 To work safely and beenvironmentally responsible 815 Goals and Objectives Maximum production or availability of facilities at the lowest cost andat the highest quality and safety standards Maintaining existing equipment and facilities Equipment and facilities inspections and services Equipment installations or alterationsExample:Increase production capacity by : Reducing unplanned equipment downtime Reducing planned equipment downtime Reducing volume of off -spec production Increasing production speedThe goals should be shared with the operations and Objectives Identify and implement cost reductions ( reduce maintenance costsby : Identifying/correcting machine problems before they bec ome tooserious Improving maintenance troubleshooting Improving personnel efficiency Reducing maintenance parts inventory Identifying and replacing poor maintenance practices orprocedures Improving personnel skills and performance Provide accurate equipment maintenance recordsExampl es (cont.))

8 :917 Goals and Objectives Collect necessary maintenance cost information Optimize maintenance resources Optimize capital equipment lifeExample: Reduce capital expenditures by: Extending equipment life Making better repair vs. replace decisions Installing equipment with best cost/performance ratio Minimize energy usage Minimize inventory on handExampl es (cont.):18 Goals and Objectives Minimize the need for maintenance (this is an equipment engineering function,not necessarily just a maintenance function) Ensure the satisfactory performance of contractual maintenance services Improve worker safety by: Reducing the number of serious or critical failures Increasing planned maintenance (fewer emergencies) Improving housekeeping Improve the work environment though enhancement of personnel skills,technology implementation and automation of information systemsExampl es (cont):1019 Policies Essential link in guiding everyday activities to ensure consistency withthe overall concept of maintenance Examples of maintenance policies.

9 Each operations manager will ensure compliance with the policiescove ring the conduct of maintenance Operations will be responsible for the effective utilization ofmaintenance services Maintenance workers will be responsible for the quality of workand the effective utilization of resources A work order system will be used to request and control work20 Policies Maintenance will publish priority-setting procedures which allows otherdepartments to communicate seriousness of work and maintenance toeffectively allocate its resources Performance indices will be used to evaluate short-term accomplishmentsand long-term trends Parts will not be removed from any unit of equipment and used to restoreanother unit to operating condition without discussion All maintenance personnel will be trained on maintenance evaluations will be made to ensure personnel are proficient Procedures are the out-growth of policy.

10 They specify what must be done andhow to do it in order to meet policy guidelinesExampl es of maintenance polici es (cont.)1121 Management Maintenance and reliability (M&R) StrategyPrinciples Strategy Goals Plans Resource AllocationOperating UnitsGoals Plans Resource AllocationResults Reliable Equipment and Processes Operating Cost Reduction Maintenance Cost Reduction Greater Productivity Improved Safety Less Waste GeneratedMaintenance Plans Resource AllocationEngineeringGoals Plans Resource Allocation22 The Production/Maintenance Interface A great source of conflict is the problem of communication betwee nthe production and maintenance functions.