The Instantaneous Cost and Failure from Breakdowns is Huge. When a failure incident occurs, there is a consequential loss of profits and amassing of costs. The cost of failure includes lost profit, the cost of repair, fixed and variable operating costs wasted during the downtime, and a myriad of consequential costs that surge through the business. They are all paid for by the organisation and seen as poor financial performance. The costs of failure cannot be escaped and are counted in fortunes 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 not having 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 helps companies recognise and prevent this tremendous waste of money.[Read more…]
Life Cycle Asset Management
This Life Cycle Asset Management article series introduces and discusses life cycle asset management strategies, systems and processes for optimizing operating asset economics, reliability, performance, and return on investment.
Life Cycle Asset Management, Enterprise Asset Management (EAM), Engineering Asset Management, and Physical Asset Management (and their linguistic variations) are considered to be synonymous names. Life Cycle Asset Management is used to title this series, as it has the correct connotation of what is intended when the applicable strategies are adopted by organisations.
‘ISO 55001 Asset Management – Management systems – Requirements’ is an international standard for certification of life cycle asset management systems and posts about the ISO 55000 asset management suite of documents are included in this series.
The purpose of this Life Cycle Asset Management series is to provide reputed, useful content that brings value and improves asset performance when used in operations and organisations.
The Life Cycle Asset Management series of articles are provided with permission of Plant Wellness Way EAM and Lifetime Reliability Solutions.
NOTE: The series does not include coverage of related commercial or vendor software or database management applications.
15 Ways to Remove Operational Risk
To increase reliability, you need to decrease the chances of failure occurring. Each chance of failure creates risk. Operating risk can be mitigated and managed by meeting all 15 Precision Maintenance excellence targets.
This list of precision maintenance excellence targets is how to ensure component parts, and the equipment they are in, always operate with optimal reliability. Each requirement must be met to the highest standard. By doing this your equipment and machinery are operating with the least microstructure stress possible and getting utmost reliability.[Read more…]
Example ACE 3T Maintenance Procedure with Inspection & Test Plan (ITP)
Here is a great example from an industrial operation of a maintenance procedure using an Accuracy Controlled Enterprise (ACE) 3T standard operating procedure (SOP) format. To make it better would need photos and/or videos included for critical tasks. 3T stands for Target-Tolerance-Test, which are the minimum criteria needed to specify maintenance task quality and prove compliance. The 3T’s are a simple maintenance work quality assurance technique we invented to maximise the chance of doing outstandingly high-quality maintenance work that brings you outstanding plant and equipment reliability.[Read more…]
So, What’s Still Wrong with Maintenance
Enterprise Asset Management and Maintenance will Always be Spectacularly Unsuccessful at Delivering Failure-Free Equipment, Until you Change to an Equipment Wellness Paradigm
The role of Maintenance is to eliminate operating equipment risks. Yet, organizations using Preventive and Predictive Maintenance strategies still have equipment breakdowns. They still have forced outages and stoppages. They consistently get emergency repairs. So, what makes today’s Maintenance paradigm so unsuccessful at equipment risk elimination? Because it is the wrong paradigm to use. The right mindset to have is an equipment wellness paradigm![Read more…]
Benchmarking Operating CAPEX vs. Replacement Asset Value (RAV)
Is there a percent of replacement asset value benchmark for run and maintain capital expenditure?
Replacement asset value (RAV) is a performance indicator of expenditure related to the operation and care of the plant or equipment vs. CAPEX expenditure needed to replace the plant or equipment. Many people ask if there is a replacement asset value benchmark for the operating cost.
How Industrial Operations use Plant Wellness Way to get World-class Production
An Executive Report for CEO’s, Executives, and Senior managers in industry and manufacturing.
Utmost operating profits, lowest maintenance costs, world class reliability, & outstandingly effective physical asset management the Plant Wellness Way
Let a Plant Wellness Way EAM System-of-Reliability halve your Annual Maintenance Costs
In the Plant Wellness Way (PWW) you do nothing to your business until you have total confidence that what you do, and how it will be done, will be extraordinarily successful.[Read more…]
Rate of Occurrence of Failure
The Rate of Occurrence of Failure (ROCOF) curve is the sum of all the individual component failure curves across the service life of an asset. As shown below, it looks like a bathtub, giving it the nickname, a bathtub curve.
Equipment reliability is malleable by choice of policy and quality of practice.[Read more…]
Is it Time to Kill Your Organization to Build a Better One?
Every organization and organism’s performance is limited to the capability of its design. If you want better business results, then get or build a new organization with systems designed to naturally deliver the outcomes and profits you want. Nothing else you do will ever work as well![Read more…]
Create Your Organization’s ISO 55001 SAMP
PLANT WELLNESS WAY EAM METHODOLOGY USES THE ‘IONICS’ STRATEGIC ASSET MANAGEMENT PLAN FOR BUILDING AN ASSET MANAGEMENT SYSTEM
SIMPLY FOLLOW THE INDUSTRIAL AND MANUFACTURING WELLNESS BOOK TO CREATE YOUR ORGANIZATION’S ISO 55001 SAMP[Read more…]
Doing Equipment Criticality is as Simple as ABC
This activity-based costing (ABC) method calculates the actual cost of a failure incident and uses the total dollar value to the business as the means to rate equipment criticality. The criticality of an item of plant is determined by the cost consequences and losses of equipment failure across the whole company. Using this method puts a real dollar value on a production equipment loss incident. This financially robust and reliable method provides an accurate way to prioritise production equipment and to justify the necessary risk management and maintenance measures to protect against failure. It recognises that a production failure event has cost repercussions throughout an organisation affecting many people and departments, with all of them incurring costs. These costs are lost business profit that could have been earned and banked, but for the incident. The financial model reflects the actual production and maintenance practices in the operation and their cost implications to the whole organisation if they are inadequate. It delivers clear indication of the responsibility’s managers, supervisors, operators, and maintainers have of properly running, maintaining, and caring for plant and equipment to prevent production-losses to the business.[Read more…]
Introducing Industrial and Manufacturing Wellness
Plant Wellness Way EAM methodology uses systems engineering and life-cycle risk elimination to re-engineer your company and operational processes to get utmost asset reliability and maximum success and profits from your operating plant and equipment
You get optimal life-cycle asset management, production, and business processes delivering outstanding plant, equipment, and process reliability[Read more…]
Calculating the Failure Rate of Parts
This simple example explains how to calculate the failure rate of parts, known as the Hazard Rate, using a drinking glass. Historic records, like maintenance, operating, supply chain, and financial information, are accessed to understand the situation being analyzed and gather modelling data. Once all necessary information is collected and the situation is investigated, then proposals to address and solve the problems causing and permitting the failure to happen are selected and a business case is developed.[Read more…]
Technological Inheritance Effect on Failure Rate, Defect Elimination and Reliability Effects
Technological inheritance, defect inheritance, and quality inheritance transfer to the future. To create a better future for your organization you first must create a better past so it can later inherit the preordained successes you designed and imbedded into your company.[Read more…]
Old Preventive Maintenance (PM) Out, New Preventive Maintenance (PvM) In
PREVENTIVE MAINTENANCE STRATEGY IN A PLANT WELLNESS WAY EAM SYSTEM-OF-RELIABILITY
IN A PWW EAM SYSTEM-OF-RELIABILITY, PREVENTIVE MAINTENANCE STRATEGY IS TO REPLACE PARTS WHEN EXCESSIVE STRESS BUILD-UPS IN THEIR MICRO-STRUCTURE[Read more…]
Testing and Proving Plant Wellness Way Enterprise Asset
Management at Industrial and Manufacturing Sites
Full of new, powerful solutions, the Plant Wellness Way EAM methodology ensures operations and companies get to world class equipment reliability
Let a Plant Wellness Way EAM System-of-Reliability halve your Annual Maintenance Costs
People investigating the Plant Wellness Way enterprise asset management (PWW EAM) methodology want to know exactly what happens when they use it, especially how the analysis and implementation will be done in their own operation. A PWW EAM System-of-Reliability brings you three massive business advantages:[Read more…]