Editorial

The definition and use of Overall Equipment Effectiveness over the years has been widely debated.

Many practitioners have found that OEE has several uses and definitions which have led to
considerable confusion when comparing machine-to-machine, plant-to-plant, or company-tocompany.
Unfortunately, OEE was not designed to make comparisons from machine-to-machine,
plant-to-plant, or company-to-company, but it has evolved to these common levels of misuse. OEE is not a statistically valid metric, but it has been used as such for years.

The purpose of this article is to discuss the original intent of Overall Equipment Effectiveness as a metric and a measure. I initially learned OEE from Seiichi Nakajima, the

Leading maintenance repair and operation (M.R.O.) organizations are leveraging a range of best practices for optimal asset performance. Such methods encompass maintenance best practices that drive efficiencies and equipment life cycles, as well as cost-cutting ideas from allied industries like field services.

Efficiently run field service teams have, for years, used and benefited from automated scheduling applications that deliver the right service tech to the right location at the lowest cost. They have cut wasteful travel and duplicate visit expenses to complete more service calls that better serve their customers and extend asset life.

Conversely, asset managers are well aware that more work order information and background, with more details, in the hands of technicians at the point-of-performance is a key productivity driver that means improved equipment performance. Data captures reported electronically also are driving better decision-making by management, in addition to fueling accurate and timely compliance reporting.

Risk Based Inspection (RBI) is a method for using risk as a basis for managing an inspection programme. The concept of risk is used to target inspection and maintenance resources at areas of the plant where they can have the greatest effect in reducing risk, the occurrence and consequences of unplanned failures and to reduce the cost of unproductive inspections. Risk is a function of both the likelihood of a failure and the consequences of the
failure.

An RBI programme must include updating from results of inspections,monitoring and process changes and will specify an inspection requirement and frequency. The inspection requirement may be satisfied by a number of alternative inspection methods.

Tischuk Enterprises (UK) Ltd has developed an integrated software systembased on the Tischuk Operational Criticality Assessment (OCA) system of analysis. This is designed to assess risk in a simple and cost effective way and is a fundamental part of the development,implementation and management of risk based strategies. OCA uses a 3 x 3 risk matrix to represent the different levels of risk.

Article written by Torbjörn Idhammar  VP and Partner, IDCON, Inc., a maintenance management consulting and training company.Further information is available by contacting This email address is being protected from spambots. You need JavaScript enabled to view it.

Visiting plants in different corners of the world, we often are asked:

If you want to change your current maintenance reality, you must begin with the basics. One of the cornerstones of a successful maintenance effort is the precise execution of thoughtful, well-written preventive maintenance (PM) procedures. There are several steps that must be followed to ensure that these procedures are as effective as possible.

Step #1: Assessment The first step in the development of an effective PM procedure is to determine the condition of the machine or machine center. You have to know where you are before you can decide where you want to go and how you intend to get there. If the machine is newer equipment, this evaluation should be fairly straightforward. If, however, you are dealing with equipment that has been in service for a period of time or has a history of unreliability, this assessment could be quite a lengthy undertaking. Still, it

By carrying out regular condition monitoring checks on critical rotating plant and machinery, Corus Northern Engineering Services (CNES), the maintenance, condition monitoring and engineering services company within Corus Group, has helped a limestone quarry in Cumbria maintain its output, efficiency and profitability.

CNES

The Huge Instantaneous Impact on Your Business of Defect Cost and Failure Cost. When a failure incident occurs there is a consequential loss of profits and a massing of costs. The cost of failure includes lost profit, the cost of the repair, the fixed and variable operating costs wasted during the downtime and a myriad of consequential costs that reverberate and surge through the business. These are all paid for by the organisation and seen as poor financial performance. The costs of failure cannot be escaped and are counted in millions of dollars of lost profit per year. Total defect and failure true costs are not normally recognised by managers, yet they can send businesses bankrupt. In the instance of a failure all its costs and losses are automatically incurred on the business. These costs can only be prevented by precluding the failure in the first place. This article explains the 'instantaneous cost of failure' (ICOF) and introduces a proactive technique, 'Defect and Failure True Costing', that adds economics to RCM and FMEA to help companies recognise and prevent this tremendous waste of money.

The Cost of Failure to a Business
When a business operates it expends fixed and variable costs to make a product which it sells for a profit. Figure 1 is graphical representations of a business in operation. The business produces a product that requires an input of costs which it sells to pay for them and make a profit.

Reliability Centered Maintenance has changed the way we think about Preventive Maintenance (PM). It has caused some to question whether it is even necessary to do preventive maintenance. The truth is most manufacturing facilities would benefit from a good preventive maintenance program. It would be especially beneficial for those plants that rely on breakdown or run-to-failure maintenance. But, a preventive maintenance program is potentially risky, so it must be administered and performed properly to be successful. This paper will examine both the benefits and risks of preventive maintenance and offer some ideas on how to make it successful. We will start with a definition of preventive maintenance.

What is Preventive Maintenance?

Preventive maintenance is planned maintenance of plant and equipment that is designed to improve equipment life and avoid any unplanned maintenance activity. PM includes painting, lubrication, cleaning, adjusting, and minor component replacement to extend the life of equipment and facilities. Its purpose is to minimize breakdowns and excessive depreciation. Neither equipment nor facilities should be allowed to go to the breaking point. In its simplest form, preventive maintenance can be compared to the service schedule for an automobile.

What constitutes adequate PM frequency in your plant? How do you know when enough is enough? Where do you want your PM program to take you? Think before answering. No guessing allowed.

When establishing an effective maintenance program, one must determine not only which preventive maintenance (PM) routines to accomplish, but how often they should be done. On the surface, the answer to this question would seem to be quite simple. Is it really?

One proven theory is that the PM to corrective maintenance (CM) work order ratio should be about 6 to 1. This theory assumes that PM inspections reveal some type of corrective work that should be completed on an asset on average every six times it is performed. The assumption is that, if the ratio is greater than 6:1, you are performing the PM too often; if the ratio is less than 6:1, you are not performing it often enough. (The "6 to 1 Rule" was proven by John Day, Jr., manager of Engineering and Maintenance at Alumax of South Carolina, during the period when Alumax of South Carolina was certified as the first "World-Class" maintenance organization.) You might accept this theory, put it in place in your Maintenance program and forget about reading the remainder of this article. Or, you might choose to continue reading, as we attempt to prove or disprove this theory.