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.

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.

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.

Enterprise Asset Management and Maintenance will Always be Spectacularly Unsuccessful at Delivering Failure-Free Equipment, Until you Change to an Equipment Wellness Paradigm

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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!

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. 

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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.

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.

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!

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

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.

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

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.

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.

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

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: