James Reyes-Picknell — Active Contributor

Entropy and economics, like entropy and maintenance, are related. In part 1 there is a simple 3 legged stool model: design, maintenance, and operations being its 3 legs. It can deliver high performance at low cost and risk – i.e.: high productivity. It is important to keep the legs balanced and indeed intact! Doing so requires a bit of investment. In thermodynamic terms, we need to put some energy into the system to keep the entropy from growing. That energy is an investment in maintenance and the payoff comes in the form of steady, predictable revenues with a high margin for profit. Those words should be music to accountants’ ears. [Read more…]

Entropy fundamentals for more Uptime can help us understand maintenance and reliability a little bit better. Reliability requires good execution of the right maintenance (energy), otherwise we will see reactive maintenance (entropy and chaos) increase. Engineers are familiar with the concept of “entropy” and the laws of thermodynamics. The second law of thermodynamics states that the total entropy of an isolated system always increases over time. It can remain constant in ideal cases where the system is at a steady-state or undergoing a reversible process. So what does that mean for us in the world of asset management and maintenance? [Read more…]

Asset Management in Public and Private Sectors have some similarities and some contrasts. Most of our clients are in the private sector but occasionally we do some public sector work so we see both sides. Often, we notice distinct differences in practices and in what motivates those practices. Both have strengths and weaknesses. Both can learn a lot from each other. [Read more…]

These days most of us are used to instant gratification – we want it now and we want it cheap! When it comes to information, entertainment, finding your way around, and communications we more or less have it all at our fingertips. It’s also available to us just about anywhere. We can even order and pay for coffee to pick up on our way from the commuter train to the office – no line ups for delays. We can book houses, rooms, hotels, airlines, vacations, and rental cars at the touch of our fingers with apps that show us the cheapest options. [Read more…]

Are we on the right track with the right train? Your job is to improve reliability and you have a plan. It focuses on bad-actors, having the right data, cleaning up some parts data that is known to be causing delays in work execution, a bit of training in reliability methods, and your adding engineers. You are certainly on the right track with your plan and the actions you will take should indeed make some improvement. But are you on the right track? [Read more…]

The original edition of Uptime had “process re-engineering” as a 4^th level at its pinnacle. It reflected what was then widely regarded as an approach to obtain beneficial change quickly. But, since the 1990’s that approach, was abused and used as a smoke-screen for downsizing or right-sizing as many would prefer to call it. That was never intended by the originators of “Business Process Re-engineering”, but it is what happened. It was lopped off the top of the pyramid in the 2^nd edition – process re-design belongs as  a result of strategy, not as a panacea for poorly designed and executed process. Processes should be revisited BEFORE implementation of IT / IM and occasionally it should all be reviewed as part of good governance, just like audits. The fundamental processes of good maintenance management practice are already described in this book’s chapters – how they appear on flow charts or value stream maps is up to each user. The third tier in Uptime (1^st edition) was about Continuous Improvement, but it contained methods that were both more fundamental in their importance and more sophisticated than the tweaking that “continuous improvement” implies. [Read more…]

In the first edition, the second tier of the pyramid was called “control”. Of course the harder we try to control something, the more complex we make things, and the more likely they will go awry. If you have teenage children you can see that very clearly! You want them to learn and mature, but if you try to control how they do it, you will have trouble. Less control, while providing guidelines and advice, and letting them make their choices will work far better. In “Uptime” the emphasis is on successful practice, not control. Control is exercised in how you decide to implement the practices. The practices remain “essential” to your success no matter how you deploy them. The subjects covered in this level of the pyramid have remained much the same throughout all three editions of Uptime but they’ve grown richer in detail, providing more insight, and with emphasis on how tightly integrated they really need to be with each other. [Read more…]

Leadership

This is the base of the pyramid – its foundation, comprising Strategy, People, and Teams. It includes a few topics: Strategy and People and Teams. [Read more…]

Benjamin Franklin’s axiom, “An ounce of prevention is worth a pound of cure”, has been used most commonly when referring to health care. It is also highly appropriate in reliability and maintenance circles.

Of course, we complicate it in business by wanting to know what the prevention will cost and what we save by avoiding the cost of the cure. [Read more…]

The “no brainer” opportunity

Let’s say that you run your own business. You have an opportunity to invest some money and get a payback that is more than your total investment within the first year (payback is more than 100% in the first year). Moreover, that payback will continue for many years. Would you invest?

Most entrepreneurs running their own businesses would say yes. After all, the proposition is a “no brainer”. There aren’t a lot of investments with such huge paybacks. Yet many managers in most larger companies won’t go for it. Why? [Read more…]

These are challenging economic times and opportunities abound with many of our customers to add new business value. They are turning to us and asking: “You’ve brought great value to our Reliability Centered Maintenance (RCM-R) program through knowledge capture, personnel education, laying the foundation for a ‘living’ maintenance program and so on. However, what additional value can you provide us beyond what you have already done?”  One answer: “Focus on writing high-value, asset maintenance tasks. i.e. Tactical PM Program Implementations”. [Read more…]

Contributed by: David A DeCastro (Salvador, Brazil).

In traveling the world in search of excellence in MRO Materials Management (indirect materials / spare parts), I noticed two curious facts. First, even in developed countries, both the industrial companies and providers of ERPs (enterprise management systems) are often technologically quite backwards outside the realm of their product specialization. Secondly, those typically smaller companies or subject matter experts who have developed differentiated technology, tend to keep it as a safe and guarded trade secret, failing to commercialize their brilliance. [Read more…]

If you can’t sell all you can produce, then reducing costs is often the only way to improve margins, but that simplistic accounting perspective is not always the case. Cost control is often thought to be key to attaining profitability but it the case of maintenance it can get you into trouble. Cost control can have a big opportunity cost if you don’t take advantage of the opportunities you have. Consider that what you might really want is greater value – more for less, no just less. [Read more…]

In 2014, at an IMEC conference organized by the University of Toronto, Art Rice of Maintenance Technology Magazine said that in many cases “Lean is a form of Anorexia”. He was right then, and he is still right today.

When I heard him, I realized that in many cases where I’ve seen attempts at “lean manufacturing” the lean really means “understaffed”. In those cases some of the lean manufacturing tools have been implemented, often with the help of outside expert help but lean results haven’t occurred. The introduction of “lean” in those companies was yet another attempt to cut costs without any deep thought as to what caused the high costs before introducing “lean”. [Read more…]

Reliability Centered Maintenance (RCM) is without doubt the most effective method to determine your failure management policies, yet it is sometimes seen as an expensive and time consuming endeavor used to produce what some (mistakenly) believe they can get from manufacturer recommendations and other sources. The naysayers see it as a “gold plated” approach to a relatively simple challenge – produce a decent maintenance program.
They couldn’t be more wrong! And that error, could get them into a lot of trouble if circumstances align against them. [Read more…]