Cost of Unreliability

by H. Paul Barringer

The cost of unreliability is a big picture view of system failure costs, described in annual terms, for a manufacturing plant as if the key elements were reduced to a series block diagram for simplicity.  It looks at the production system and reduces the complexity to a simple series system where failure of a single item/equipment/system/processing-complex causes the loss of productive output along with the total cost incurred for the failure.  If the system IS sold out, then the cost of unreliability must include all appropriate business costs such as lost gross margin plus repair costs, scrap incurred, etc.  If the system is NOT sold out, and make-up time is available in the financial year, then lost gross margin for the failure cannot be counted.  The cost of unreliability is a management concern connected to management’s two favorite metrics: time and money.

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Should You Contract Out Maintenance?

by Torbjörn Idhammar

As an option to reduce plant costs, plant managers may consider contracting out maintenance work. This may have some merit, depending on many factors, including the nature of the business.

One question that may be asked is, “Is maintenance a part of our ‘core business’?” Let’s look at a couple of examples. If the business is a hospital, where revenue is generated by the sale of medical services, and maintenance consists of a few specialized activities, such as janitorial, H&V system servicing, and repair of advanced medical diagnostic and monitoring systems, then contracting out these activities is almost certainly the best approach.

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Maintenance Cost and Estimated Replacement Value

by Torbjörn Idhammar, IDCON INC

Yesterday you were a happy camper.  Today you are told your Maintenance Cost (MC) as a percent of your Estimated Replacement Value (ERV) is 4.9%.  According to Consulting, Inc. and your corporate management 4.9% is way too high.  Good performers are under 3%, some operations are even under 2%.  So, the question is what are you going to do about it Mr. Maintenance Manager?

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Workforce Development

by Ramesh Gulati
Co-author: Bill Hall

Abstract
Big changes are happening in today’s workforce. These changes have nothing to do with downsizing, global competition, or stress; it is the problem of a distinct generation gap. Young people entering the workforce are of diversified background and have much different attitudes about work. They want a life‐work balance. They want to be led, not managed — and certainly not micro‐managed. The new mode is flexibility and informality. A large proportion of our managers of the veteran era have been trained in relatively autocratic and directive methods that don’t sit well with today’s employees. Are we preparing our workforce to meet tomorrow’s need?

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Costs, Benefits and Projecting Project Payback

by Andrew Gager

I renewed my subscription to Consumer Reports last month. I don’t buy anything of value without referencing Consumer Reports and two or three other review sources. For instance, I just bought a new lawn tractor. I researched the options for weeks before finally purchasing one. It takes about 1½ hours to cut my lawn with a traditional push mower. I figured a riding mower would cut my mowing time significantly. So my cost-to-benefit ratio was based on money spent now divided by the total number of hours reduced over X years. A no brainer, right?

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“Wrench Time” – Why the “FEAR” to Measure Maintenance Productivity?

by José Wagner Braidotti Jr.

The best results of maintenance practices carried out in enterprises critically depend on the efforts of maintenance staff to ensure their day-to-day actions comply with the schedule of services in order to avoid unwanted failures, correctly diagnose the behavior of active production processes, and ensure quality information recorded in the work orders.

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Beginning a Maintenance and Operations Partnership

by Torbjörn Idhammar

Plant pros often talk about the importance of a maintenance, operations and engineering partnership. In my experience, the discussions commonly center on very general terms such as better communication and understanding. Those issues are important, but we need precise rules and actions to drive that partnership long term.

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The Financial Benefits of Reliability

by Bruce Hawkins, CMRP, Emerson Reliability Consulting
This article originally appeared in IMPO’s April 2015 print issue.

When manufacturing organizations look to asset reliability to improve their facilities, there is often one main driver behind this decision: financial performance. There are many reasons to employ reliability practices including improved safety and production, but many companies focus on reliability initiatives because they touch so many aspects of the business and yield strong financial results. Continue reading

Rethinking the Decision Factory

by Roger Martin
Harvard Business Review

Companies everywhere struggle with the management of knowledge workers. They compete fiercely to find and retain the best talent, often accumulating thousands of managers in the process. For a while this is fine, but inevitably, usually when economic conditions turn less favorable, they realize that these expensive workers are not as productive as hoped, and in an effort to manage costs they lay off a large swath of them. Soon after, though, they’re out recruiting again. Continue reading

How to Build Your ISO 55001 Asset Management System Quickly and make ISO 55001 Certification Easy

from Lifetime Reliability Solutions

How to Build your ISO 55001 asset management system quickly and make ISO 55001 Certification easy: Enterprise asset management has an international standard: 55001 Asset management – management systems – requirements. It specifies what an organization’s asset management system must contain. Producing an ISO 55001 compliant asset management system leads you into a detailed, disjointed, demanding project. But there is a much simpler solution to design and develop a complying ISO 55001 EAM ready for ISO 55001 certification.

Click here for pdf file. (PDF: 1.6MB)