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Implementing RCM to SAP R3 In order to populate SAP with maintenance

plans, a structured approach was required


Provided by to ensure that that the correct amount of
maintenance was performed on the correct
Transfield Maintenance equipment. Reliability Centred
Maintenance (RCM) is a proven
Introduction methodology for the development of
maintenance plans. The RCM Turbo
Transfield Maintenance were originally (Maintenance Plan Development System)
contracted at Queensland Nickels Yabulu software package was the tool used to
refinery to provide non-core maintenance facilitate the RCM process. This allowed
services including building, rigging and for a quicker overall assessment, and
scaffolding services, the workshop and documents the failure mode data and
garage services, as well as all painting and assumptions, on which the maintenance
sandblasting. This contract was then strategy is based, to be documented. This
expanded to include the core maintenance is essential for the development of a
activities compromising maintenance for formalised constant improvement process.
the refinery plant and equipment, fuel and
oil facilities and the wharf unloader. The The first step in the process was the
contract included all the administrative development of an equipment register
duties of maintenance planning, followed by a comprehensive criticality
performance and recording. Also in the assessment. The RCM Turbo software
contract were the supply activities for all tool was used for this criticality
materials, which included the sourcing, assessment, which by using a fuzzy
purchasing, optimisation, warehousing and logic question set, prioritises equipment
distribution of these materials. The supply based firstly on equipment whose failure
contract excluded raw materials, fuel and constitutes a breaching of safety,
production chemicals. environmental and statutory standards,
followed by equipment whose failures
As part of the contract agreement, impact on production. The results of this
Transfield were required to configure and assessment gave equipment a rating on a
implement the plant maintenance and scale of 1 to 16, 1 being the most critical.
materials management modules of SAP
R3.0D, the Computerised Maintenance Once the criticality assessment was
Management System (CMMS) used on complete, it was then possible to determine
site. This involved commitment of staff to where to begin the RCM assessment.
the project, completion of SAP training, Obviously, the place to start was at the
data cleansing and conversion, inventory most critical equipment and then working
audits and rationalisation, cataloguing of down through the criticality listing until all
equipment, drawings, documents and key equipment had been analysed.
materials, as well as the establishment of Maintenance steering committees were set
maintenance plans for critical equipment. up around the site to assist with the
criticality assessment and the RCM
process.

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These steering committees included The results : your equipment performs
representatives of both Process more effectively, your operations run more
(Queensland Nickel) and Maintenance smoothly, and your overall maintenance
(Transfield) ranging from, on the costs are substantially reduced.
operations side of the business, the
Engineering Manager, Production RCM Turbo (Maintenance Plan
Superintendents, Crew Leaders through to Development System) has been used to
control room operators, and from the develop a maintenance hierarchy structure
Maintenance Side, Area Maintenance that could be loaded up into the PM (Plant
Engineers, Planners, Foremen, and Maintenance) module of SAP R3. In the
Tradesmen. All members of the development of the hierarchy structure, the
maintenance steering committees were plant was broken down into 8 Business
provided with RCM training prior to the Units so that costing for different facilities
project being undertaken, to enable them could be captured.
to provide the best support possible to the
RCM team. The most important function RCM Turbo is a planning and analysis tool
of these committees was the challenge and to advise the correct scheduling of
approval of all maintenance strategies maintenance work within the maintenance
before being implemented into the SAP management system. It will help optimise
CMMS. This allowed for the best possible and utilise the maintenance resources on
strategy being developed up-front as well the site.
as providing ownership of the strategies
to the people who will be using them. The assessment was performed using
RCM Turbo team member, key area
Objectives of This Presentation people, engineering staff and plant
resources.
Clients have benefited significantly by
implementing the RCM Turbo system to These levels consist of BOMs for
manage everything from SAP work orders functional locations, equipment and also
and Production Resource Tools (PRT) to materials. Task lists have been grouped at
purchase and inventory. productive unit levels, designed around
preventive checks being performed within
RCM Turbo supports the progressive 3 boundaries, isolated, shutdown or
implementation of RCM principles. With running condition.
easy-to-use data entry screens for data
collection, operations and maintenance Because of certain change condition within
employees can correctly record every the PM module of SAP, data being up
equipment failure and downtime loaded into SAP should be thoroughly
occurrence, including minor but costly developed so that the system can perform
recurring problems. From this data, the as a maintenance management system.
most accurate and detailed downtime and
failure analyses can be developed. Implementing the strategic plan
specifically address the four points.
By tracking and analyzing equipment
availability, total equipment downtime, These were :
and operational downtime to identify the 1. Engineering Standards : to improve
root causes and frequency of failures and engineering standards to best
downtime, preventive maintenance or even practice levels (at trades level,
permanent solutions can be undertaken. supervision and planning level and
in engineering)
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2. Engineering Systems: to deliver Transfield Maintenance provides
Word Best Practice reliability consulting services, on a fee basis, to assist
and maintenance engineering. customers in planning and carrying out the
3. Customer Relations : to design and deployment of large scale asset
implement communication plan by maintenance solutions.
customer.
4. Leadership Development : to In many cases, customers are able to
design and prepare training install and implement CMMS systems and
materials, define required roles and perform any necessary customisation
responsibilities, identify key themselves with only limited assistance
performance measures and target from Transfield. In other cases,
and set-up KPI' and measuring particularly where a complex, integrated
strategies success. solution or extensive customisation is
required. Transfield provides extensive
Company Background implementation planning, project
management, network communications,
Transfield Maintenance is one of the system integration and custom
Australias leading maintenance service modification services. The companys
providers. The company carries out over professional services group has expert
$400 million per annum of maintenance knowledge of CMMSs products and RCM
activities across Australia with clients in tools, is familiar with the concepts and
governments and the private sector. theories of maintenance and planning and
cost analysis, and can draw upon
Transfield Maintenance meets a variety of experience in implementing systems
customers requirements ranging from addressing diverse applications on a
large scale fully integrated plant number of different platform in a wide
maintenance delivery involving labour, range of industries worldwide.
equipment, and material resources to one
off assignments assessing such issues as Transfield Maintenance Philosophy
strategic planning, maintenance
engineering, CMMS implementation and Develop maintenance strategic plan so
reliability engineering. that maintenance is planned and
managed such that it provides an
Transfield Maintenance operates an ISO efficient continuous operating facility
9002 compliant quality system and at all times
achieves high standards of performance in Maintenance is treated as an
safety. A disciplined continuous investment and not a cost
improvement program is a central part of Maintenance will show a positive
the companys philosophy delivering best return on investment through improved
maintenance practices to our customers. profitability of the Transfield
operations

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Continuous Operational Improvement Additional engineering support
requirements need to be clearly
The RCM assessment now being identified and established
complete, and the developed and approved Reliability Engineering Group must
maintenance strategies now input into the address future maintenance
SAP CMMS system, the final step was to improvement issues
develop the procedures for facilitating
constant improvement. This involves Maintenance Strategy
training of the Area Maintenance Engineer
and the Area Planners in the use of the Overall maintenance strategy must
RCM Turbo software package. Ideally, address People, Systems, Analysis,
every corrective maintenance activity Processes, Spares and Technology
should be reviewed using the RCM Turbo aspects
software to allow adaptation to ever
A good maintenance strategy should:
changing plant conditions. This will
Support the BU strategy
ensure that unplanned activities can be
Be easily understood and widely
assessed in a structured, unbiased way to
accepted
ensure a cost effective strategy can be put
Provide unity of purpose, clear
in place which will avoid the
direction and the focus for the
consequences of that particular unplanned
maintenance effort.
failure from occurring again.
Develop a maintenance strategy which
Hearing Best Maintenance Practice is driven by the Business Strategy
Strategies Develop a maintenance culture where
continuous improvement and learning
1. People and Culture become a way of life.
2. Maintenance Strategy Being customer focused and process
3. Maintenance Organisation driven
4. Contractor Management Achieving the full participation of all
5. Maintenance Planning and Scheduling the people
6. Shutdown Planning and Control Maintenance strategy - foundation for
7. Maintenance Budgeting Continuous Improvement
8. Maintenance Costs Better equipment and process
9. Maintenance Performance reliability allows achievement of
10. Maintenance Analysis product sales targets
11. Maintenance Management System Reduce equipment breakdown
12. Preventive and Predictive Maintenance
maintenance to (5%) of total
13. Material Management
maintenance
Reduce Unit costs by achieving
People and Culture
significant reduction in maintenance
costs
Regular meaningful performance
Cost reductions without sacrificing
reviews
reliability and compromising safety
Conduct skills evaluation and develop
and the environment.
skills matrix
Reduce the right maintenance costs
Perform training needs analysis and
Cover extent of maintenance on all
develop training program before the
training $ value for the next critical equipment, performance
maintenance budget measures and targets
Job descriptions need to be developed
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Maintenance Organisation Develop standardised guidelines for
history collection which address:
Optimal maintenance organisation Responsibility for collecting
reflected by ratios: history
The number of maintenance Defined criteria for collecting
performing personnel to the number history
of support personnel. Define the processes and criteria to
The span of control of the be used when cleaning up the
maintenance supervisors. existing history
The number of planning support How current history can be
personnel. collected in a format that can be
Calculated for larger sites less easily converted into the future
meaningful for small sites maintenance management system
Develop standard guidelines for the
Contractor Management use and application of failure codes
Develop comprehensive set of
Implement improved contractor costs planning and scheduling performance
feedback process for better control indicators:
Obtain accumulated costs from Which measures should be used to
maintenance management system determine backlog, schedule
Introduce more regular and compliance and the extent of
comprehensive progress performance planned maintenance
reporting Definition and calculation of each
of the measures
Maintenance Planning and Scheduling Targets to consider, production
requirements, criticality, limited
available resources and logistical
Get management direction on future
problems
computerised maintenance
Develop guidelines to ensure
management system implementation
compliance with statutory requirements
Practical Standardised Process
and record keeping in regard to:
guidelines
What type of statutory testing
Refine and standardise short term required, based on the equipment in
maintenance planning and scheduling use.
processes: Who must perform the different
Processing and prioritising types of inspections and testing
incoming work requests At what frequencies the various
Outline short-term scheduling tests and inspections needed to be
processes based on job priorities performed
and available resources Requirements for minimum
Guidelines must be issued statutory records to be kept for
regarding the development of different equipment.
weekly short-term plan Development of common forms
Develop backlog management and documents to be used for
process recording test results and record
Establish labour time estimates for keeping
planned jobs as well as for other
standard jobs

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Shutdown Planning and Control Develop standardised guidelines and
formats for accumulating, reporting
A standard procedure which specifies and trending monthly maintenance
the process and required extent of costs for areas of responsibility and by
shutdown planning should be major plant/equipment
developed Measure maintenance costs as a
Register required items as stock and percentage of the ERV (Equipment
develop BOM listings for shutdowns Replacement Value). Target between
Establish weekly shutdown progress 1% and 3%
meetings Set up guidelines for proportionate
Develop quantitative measures for allocation of costs to the correct cost
shutdown performance centres
Develop a top ten analysis of
Maintenance Budgeting maintenance costs from the available
cost data
Refine budgeting processes, and
various documents used already Maintenance Performance
Recommendations for improved Measurement
budgeting:
Obtain future production estimates Planning and Scheduling Performance
and estimates of equipment measures
utilisation Clearly defined availability targets for
Project all future preventive and the highly critical equipment
routine maintenance services in a Targets relate to plant usage required
monthly time phased schedule for by production
each major piece of equipment Consider other performance measures
Prepare detailed worksheets per such as equipment utilisation and usage
piece of equipment which Develop and graph availability trends
summarise the details from the for specific highly critical equipment
monthly schedule
Establish baseline availability to allow
Use failure analysis data (once
improvements to be recorded
available) to make prediction of
common failures Report reliability performance
Make allowances in the budget for measures for critical equipment:
high failure probabilities number of failures
failure rates
Maintenance Costs Control MTBFs
Set realistic reliability performance
Processes to obtain actual equipment targets based on equipment criticality
maintenance costs against budgeted and failure consequences
costs Establish baseline reliability
Set targets and measure maintenance performance of critical equipment
costs
Report preventive and corrective
maintenance costs

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Maintenance Analysis Maintenance Management System

Allocate responsibility for performing SAP IMPLEMENTATIONS


maintenance analysis Establish detailed implementation plan
Conduct Reliability Engineering and which complements the total SAP
Failure Analysis training implementation plan and addresses:
Starting point - development of a Procedure guidelines detailing how
comprehensive equipment register SAP is to be operated and set up on
Develop standard guidelines for site
equipment criticality assessment Backup processes to be used when
the system is not operational
Perform criticality assessments which
Conversion of existing history,
categorise equipment based on
including assessment and filtering.
consequences of failure
Setting up of Preventive
Establish Equipment Maintenance Maintenance schedule information
Strategy development training Setting up standard work
requirements and conduct training (e.g. instructions and job safe procedures
RCM) Setting up Bills of Material (BOM)
Remove ineffective maintenance structure
conducted on some equipment Setting up parameters to allow
Develop a comprehensive maintenance daily work order management,
plan, for critical equipment which work request entry, work
includes: prioritisation, scheduling, history
Development of preventive collection and projected work plan
maintenance schedules generation
Revision of existing routine Filtering data and load existing
maintenance and zonal inspections history from manual sheets
(carried out by operators) Loading all preventive maintenance
Establish standard work schedules that still need to be
instructions and job safe procedures developed
(relating to safety requirements) Loading BOMs for all major
Establish a spares planning process critical equipment
for preventive maintenance and Developing implementation plan
shutdowns for stores module setup and
Develop implementation guidelines for integration with maintenance
Reliability Engineering techniques module
Once fundamentals implemented, Develop manuals and procedures
consider: on how to effectively use the
Root cause analysis system
Probabilistic failure analysis Identify and customise SAP reports to
Equipment design review analysis provide the required information, for
Availability block diagramming planning and scheduling, history
and fault tree analysis analysis, failure codes and downtime
Failure Modes, Effects and data collection
Criticality Analysis (FMECA) Develop and implement interfaces
processes to allow maintenance costs
collected in SAP to be transferred to
Supply and Accounting systems

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Preventive and Predictive Maintenance Should be based on production
requirements and anticipated
Revise existing maintenance schedule equipment utilisation
documentation Structure process to keep plans up
Add additional schedule tasks required to date
and remove tasks found to be Use long term plans as a basis for
ineffective or not applicable developing future budgets, and
Develop daily and weekly routine shorter term maintenance plans
checklists (where required) and define
responsibility for executing them Materials Management
Establish and implement regular
Purchasing related procedures were
lubrication schedules for all plant and
field equipment documented
Establish formalised spares planning Develop general stores procedures and
process to minimise spares inventory optimisation procedures
unavailability for planned maintenance Develop generic procedure for cycle
activities in future counting and implement
Assess condition monitoring comprehensive cycle counting
requirements for all critical equipment programs
at each site Develop more formal issuing process
Establish formal conditional whereby spares are issued against a
monitoring programs focused on the valid approved Work Order printed
following areas: from the maintenance management
The oil sampling and analysis system
currently being performed Develop guidelines regarding the
The feasibility and benefit from apportionment of costs for specific
conducting regular vibration spares issues
analysis on major rotating Establish and implement
equipment comprehensive set of performance
The possible introduction of measures including:
thermographics as a tool for Customer service level
predicting potential electrical Stock accuracy
equipment failures Stock on hand value
Vibration monitoring and thickness Stock turns for different categories
testing should be carried out by Conduct formal risk assessments
experienced maintenance personnel which balance consequences of not
These personnel had sufficient stocking spares against the cost of
specialist skills or knowledge to holding them
effectively conduct measurements or Evaluate Min and Max quantities for
analyse the results all critical spares
Establish feasibility of condition Establish and implement basic ABC
monitoring tasks classification of the stocks by usage
Develop long-term plans which value
include the following :
Evaluate maintenance and operations
Projected preventive maintenance
spares as possible consignment stock
and shutdown activities for at least
and set up agreements
two years ahead

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Define responsibilities for achieving RCM project will be more readily
inventory reduction against acceptable accepted.
services levels The committee also develops a renewed
Identify the responsibility for understanding of the plant when being
questioned about how things run.
expediting and establish a formal
expediting process
3. Begin with small steps
Evaluate and streamline the re-
ordering process for stock items Initially focus attention on a single area
Establish formal purchasing that maintenance personnel consider to be
performance measures, such as a problem area. By going through the
measuring the quantity and lateness of RCM process and then implementing plans
orders the maintenance personnel can see the
Implement a more structured spares final results of the RCM project in that
planning process at the plant to specific area, highlighting its value and
decrease spares unavailability encouraging the continuation of the
problems process.

Implementing RCM - What works and 4. Flexibility


why
Maintenance strategies are not set in stone.
1. Having senior management support The RCM project involves setting up
strategies based on assumptions about
By having senior management being seen criticality, cost of downtime, cost of repair
to support the project the workforce will etc. These conditions may change and in
initially be open towards the RCM turn effect the maintenance strategy
process. Establishing an RCM program is effectiveness. A continual optimisation
very resource intensive and with out the program is a necessity.
support of the entire plant it becomes very
difficult. The support must begin at the Some interesting perspectives:
top level and filter down. Using personnel Maintenance is treated as an
with plant experience to assist the RCM investment and not a cost
process is essential. Bruce Coats

2. Getting ownership of project by By involving maintenance personnel


areas. from all levels there is a feeling of
ownership generated and the results of
Maintenance steering committee specific the RCM project will be more readily
to each area in the plant was formed. The accepted
committees were made up of the Matthew Dalton
superintendent, engineers, foremen,
planners and a RCM facilitator. These RCM is essential for the
committees discussed the results of the development of a formalised constant
rcm project, whether or not maintenance improvement process
strategies proposed were sound, on what Philip Crawford
basis decisions had been made in the past
etc. By involving maintenance personnel Continuous improvement is a
from all levels there is a feeling of fundamental building block of our
ownership generated and the results of the maintenance strategy
David Williamson
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