September 23th Review
Asset Care
Agenda:
1. Safety Topic
2. What AC Is Based On
3. Side-by-Side Comparison of AC Levels
4. Detailed Look at Level 1-3
5. Questions To Ask During a Visit or Call
6. Self-Assessment Checklist
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New “actors” in the streets…
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OPERATIONS
Bunge Production
System
Bulk handling
Initial
Capabilities
Crushing
Refining
Farmers
PEOPLE
PILLARS
INITIAL CAPABILITIES
Quality &
Food Safety
• Legal
compliance
• Strong QFS
culture
• Bunge Safety
Management
System (SMS)
• Compliance to
standards and
certification
s
• HPE/SIF focus
• Continuous
improvement
• Adherence to
Global
Quality
Management
System
• Customer
focus
4
Packaging
Shipping
Production
“How can we make sure this
equipment doesn’t break down
during harvest?”
“How can I learn to
operate this new machine
safely?”
Stand for
Safety
Milling
Environmental
Sustainabilit
y
• Implementation
of Bunge Basic
Environmental
Requirements
• Compliance to
environmental
laws in all
areas of
operations
• Applying the
3Rs: reduce,
reuse, recycle
• Community
involvement in
local
initiatives
Customers
“How can we make product
changeovers easier?”
“How do I recognize HPEs and
prevent incidents caused by
these?”
“What does best-in-class
production look like?”
“How does my work
contribute
to the success of Bunge?”
Leadership &
Engagement
Learning &
Development
• Compelling
business need
• Skills
matrices
for all teams
and roles
• Servant
leadership
coaching
• Operator
empowerment
• Training
methodology:
train the
trainer
• Zero loss
culture
• Individual
development
• Recognition
system
Continuous
Improvement
• BMOS > 85%
adherence
• Work process
optimization
• Gap analysis,
root cause
analysis
• Problem
solving
• Finding and
fixing defects
BPS – bunge.com/bicentennial
“The Best of Bunge Everywhere”
Customer
Value
• Customer
service under
control
• Supplier
service under
control
• Efficient
processes
and tools
• Cost to serve
under control
• Customer
centricity in
place
“What can we do to avoid
wasting the earth’s
resources?”
Asset
Care
• Organizational
readiness
• Spares
inventory
management
• Work
management
• Reliability
strategy
• Performance
optimization
• Maintenance
management
system
Project
Management
• Global
policies and
procedures
• Managing
capital
budgets
• Applying
project
management
tools
OPERATIONS
Bunge Production
System
Bulk handling
Initial
Capabilities
Crushing
Refining
Farmers
PEOPLE
PILLARS
INITIAL CAPABILITIES
Quality &
Food Safety
• Legal
compliance
• Strong QFS
culture
• Bunge Safety
Management
System (SMS)
• Compliance to
standards and
certification
s
• HPE/SIF focus
• Continuous
improvement
• Adherence to
Global
Quality
Management
System
• Customer
focus
5
Packaging
Shipping
Production
“How can we make sure this
equipment doesn’t break down
during harvest?”
“How can I learn to
operate this new machine
safely?”
Stand for
Safety
Milling
Environmental
Sustainabilit
y
• Implementation
of Bunge Basic
Environmental
Requirements
• Compliance to
environmental
laws in all
areas of
operations
• Applying the
3Rs: reduce,
reuse, recycle
• Community
involvement in
local
initiatives
Customers
“How can we make product
changeovers easier?”
“How do I recognize HPEs and
prevent incidents caused by
these?”
“What does best-in-class
production look like?”
“How does my work
contribute
to the success of Bunge?”
Leadership &
Engagement
Learning &
Development
• Compelling
business need
• Skills
matrices
for all teams
and roles
• Servant
leadership
coaching
• Operator
empowerment
• Training
methodology:
train the
trainer
• Zero loss
culture
• Individual
development
• Recognition
system
Continuous
Improvement
• BMOS > 85%
adherence
• Work process
optimization
• Gap analysis,
root cause
analysis
• Problem
solving
• Finding and
fixing defects
BPS – bunge.com/bicentennial
“The Best of Bunge Everywhere”
Customer
Value
• Customer
service under
control
• Supplier
service under
control
• Efficient
processes
and tools
• Cost to serve
under control
• Customer
centricity in
place
“What can we do to avoid
wasting the earth’s
resources?”
Asset
Care
• Organizational
readiness
• Spares
inventory
management
• Work
management
• Reliability
strategy
• Performance
optimization
• Maintenance
management
system
Project
Management
• Global
policies and
procedures
• Managing
capital
budgets
• Applying
project
management
tools
How to Understand Levels in BPS
Excellence
Level 3
Level 2
Start
Level 1
66
In the process of
implementing the
foundations
In the process of
implementing the tools
to drive Continuous
Improvement
In the process of
implementing tools and
capabilities to deliver
excellence
BPS – bunge.com/bicentennial
“The Best of Bunge Everywhere”
Sustained World Class
performance
Asset Care
“Sustaining maximum asset availability at the lowest cost.”
Asset Care applies proven methodology to maintain and extend the life cycle of
manufacturing assets while providing maximum operational capability at all
times:
• Maximizes
Organizational Impact of Site and Regional Reliability Teams
• Sustains Maximum Operational Performance and Asset Life while Minimizing Total Cost
• Delivers World Class Capabilities via BPS Implementation (i.e. Global Reliability Standards
applied everywhere)
7 7 Global Industrial Operations
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Reliability Roadmap
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8
11
12
13
14
15
16
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20
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Reliability Roadmap
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9
11
12
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To ensure CAP impacts were positive, GPRT developed:
• GAP Assessment Methodology
• Tactical Improvement Plan (TIP) Methodology
• Detailed Reliability Standards
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15
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GPRT’s CAP methodology built foundation for AC Pillar
GPRT’s CAP approach was developed in a Global Workshop with
all regions and segments involved. Several months were spent
finalizing details. Basics are:
• Asset Reliability GAP Assessment (ARGA) was created to evaluate a
site against (6) key Reliability Standards. It’s composed of + 400
inspection points.
• ARGA includes a multi-lingual tool and automated process.
• ARGA generates a 0-10 score measuring compliance to each
Standard. It identifies every gap and quantifies the exact Performance
Level of a site.
• Performance levels are based on proven site Capabilities and
Deliverables. ARGA is done in this format.
• Tactical Improvement Plan (TIP) methodology was developed to close
gaps in a logical order. TIPs deliver missing Capabilities and
Deliverables, in a manner that sustains gains.
• Closing a gap is simple – open the related Standard to the missing
capability and follow the requirements.
10
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Asset Care Pillar is driven by the Bunge Reliability Standards
Asset Care Pillar is based on (6)
global Reliability Standards
Work
Management
Reliability
Strategy
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CMMS
Utilization
Asset
Care
Performance
Optimization
Standards structure Capabilities into logical groupings
Inventory
Management
Organizational
Readiness
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How Standards are “Structured”
Example 1
Each Standard is broken
down into CAPABILITIES that
fall into functional buckets.
This is where we specify
exact requirements, give
context on importance, how to
do it, how it’s measured, what
prerequisites are needed,
what it enables, etc.
The same structure is used in
the detailed ARGA Tool and
in the Self-Assessment Tool.
This ties everything together.
12
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Structure is key for User Adoption and Compliance
Example: ARGA audit indicates Work Order
Kits are not labeled. Gap is captured as
IM.05.A.02.
The site opens the IM Standard and reviews
section IM.05.A.02. This lists the Inspection
Points used on the ARGA, specifies exactly
what is required and then tells exactly how to
do it.
Go to any site in compliance with IM.05 and
you will see the same approach in use.
TIPs organize corrective actions using same
exact structure, providing a closed-loop
approach that is easy to use.
Corrective actions for IM.05.A.02 used at one
site can be used in the TIP at another site.
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Execute &
Track TIP
Progress
Determine
Current
Level
(or Update)
Develop
Tactical
Improvement
Plans (TIPs)
Identify
GAPS
TIP Basics
This diagram shows how the
different CAPABILITIES tie
together. Some are enablers and
others prerequisites.
Site Teams must understand this
when creating TIPs.
Ex: Kitting (IM.05) is a great
capability that increases Wrench
Time. The chart shows a lot of
prerequisites – if a site jumps into
Kitting without these, they will
fail.
GPRT members help sites
create TIPs to ensure
enabling Capabilities are in
place—to maximize success.
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TIP Basics
SAP
Purchase
Orders
Physical
Inventory
Storage
Master
Inventory
List
Spare Parts
Analysis
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Spare Parts
Criticality
Ranking
Inventory
Control
Work
Execution
SAP
Administration
Spare
Parts
Kitting
Inventory
Life Cycle
Analysis
Work
Planning
Asset
Life Cycle
Costs Analysis
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How Standards are “Structured”
Example 2
Each Standard is broken
down into CAPABILITIES that
fall into functional buckets.
This is where we specify
exact requirements, give
context on importance, how to
do it, how it’s measured, what
prerequisites are needed,
what it enables, etc.
The same structure is used in
the detailed ARGA Tool and
in the Self-Assessment Tool.
This ties everything together.
16
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Structure is key for User Adoption and Compliance
Example: ARGA audit indicates Ultrasonic
analysis proactive tasks do not exist and IR
analysis proactive tasks are covered only
partially. Gaps were captured as RS.03.D.15
and RS.03.D.18.
The site opens the RS Standard and reviews
sections RS.03.D.15 and RS.03.D.18. These
list the Inspection Points used on the ARGA,
specify exactly what is required and then tell
exactly how to do it.
Go to any site in compliance with RS.03 and
you will see the same approach in use.
TIPs organize corrective actions using same
exact structure, providing a closed-loop
approach that is easy to use.
Corrective actions for RS.03.D.15 and
RS.03.D.18 used at one site can be used in
the TIP at another site.
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Execute &
Track TIP
Progress
Determine
Current
Level
(or Update)
Develop
Tactical
Improvement
Plans (TIPs)
Identify
GAPS
TIP Basics
This diagram shows how the
different CAPABILITIES tie
together. Some are enablers and
others prerequisites.
Site Teams must understand this
when creating TIPs.
Ex: Predictive Maintenance and
Lubrication (RS.03) is a great
capability that increases Equipment
Lifetime. The chart shows a lot of
prerequisites – if a site jumps into
PdM without these, they will fail.
GPRT members help sites
create TIPs to ensure enabling
Capabilities are in place—to
maximize success.
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TIP Basics
Asset
Life Cycle
Costs Analysis
SAP / API Pro
Assets and
Locations
Master
Asset List
SAP / API Pro
Assets and
Locations
Asset
Criticality
Ranking
PMs and
Job Plans
Technician
Training and
Skills
Proactive
Maintenance
Optimization
Master
Inventory
List
Spare Parts
Analysis
SAP / API Pro
Administration
Continuous
Improvement
Reliability
Analytics
Monitoring
Root Cause
Analysis
Work
Execution
Work
Identification
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MECHANICAL
RS.03.D.15 - Ultrasound
Slow running equipment
Gears
Hydraulic applications
ELECTRICAL
Rotating equipment
Lubrication
Note the long duration discharges
MCC
Valves
Steam traps
Substation
Ionization
Arcing / Tracking / Corona
PROCESS
Transformer
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Damaged pipes
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Compressed air leak
Water hammer
MECHANICAL
RS.03.D.18 - IR
Bearings
Gearbox / Misaligned gears
Cable duct
Trafo busbars
MCC
Heat generation
Heat distribution
Return rollers
Misaligned belts / 2-3 row
chain
ELECTRICAL
Pump / Motor / Other
Eddy current
Tank level / sedimentation
Friction / Thickness
PROCESS
Substation
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Steam traps
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AC Levels
CAPABILITIES are
based on the existing
(6) Reliability Standards
DELIVERABLES
are based on existing
metrics and the ARGA
BENEFITS
Hard benefits typically
improve > 30% as sites
move from Level 1 to 3
(typical results).
Journey takes 4-5 years.
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Asset Care Pillar ─ key summary points
Asset Care Pillar approach is “not new” – everything you see today is about leveraging what we
already know works:
• Existing Global Reliability Standards specify site Capabilities
• Existing Metrics and KPIs specify Deliverables
• Existing GAP tool is basis for new Self-Assessment Tool
• Existing Tactical Improvement Plan (TIP) methodology is used for improvement
Identical Structure used in Standards/GAP/TIPs helps drive User Adoption & Compliance
BPS is how we move all sites to leverage the “best” capabilities and sustain exceptional results.
When you visit plants in each region, they should look/act/perform similar to each other.
Up next: Level 1 Details
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→
Asset Care Level 1
Level 1 Capabilities
What one should see at a site
CM - SAP setup complete (assets, locations
All assets are setup in SAP and there are no configuration gaps impacting core business processes (Work
Identification, Planning, Scheduling and Execution). Random sampling of SAP Notifications and Work Orders finds
excellent content and proper use of data fields. Asset work histories are complete and accurate. All materials are
classified and managed by the SAP Master Data Governance (MDG) module and use the Global Taxonomy for spares.
Core Capabilities & Solid Performance
and core business processes)
IM - Proper Storage, solid Inventory and
Procurement Processes
WM - Detailed Planning, Scheduling and
Work Execution
PO -Core Metrics, Rolling 3 Year
Reliability Plan, Equipment ran at
Standard Rates
OR - Reliability Charter/Council, RACIs,
Dedicated Roles, Training Matrix/Plan
RS - Asset Criticality, Recommended
Strategies, RCA, Precision Techniques
Secure 24/7, clean/orderly, aisles/shelves/bins labeled, proper storage, metrics tracked/posted at window. Placards,
labels used so anyone can find a part within seconds given a location. PMs on specific items. Mature processes for
order/receipt/issue/return. Cycle Count >90%. Kitting manages ~25% of orders with planned materials (i.e. 25% of
planned materials are procured as-needed, not taken from stock). Inventory levels & Turnover Ratio start improving.
Labor/Crafts/Materials/Tasks are planned on all non-breakdown work. Planning/Scheduling meetings are held with
Operations each week resulting in a detailed Schedule. Schedule Compliance is a prime focus and reviewed daily.
Wrench Time is high. Supervisors manage Technician assignments to insure priorities and sequencing are correct.
Metrics are posted, reviewed and people understand how they impact each one. Performance reviews held at all
levels with data that meets audience needs. Site Reliability Plan is shown in project plan format, covers efforts in all six
Standards, lists related Metrics/KPIs/Deliverables and the level progression expected over time.
Site organization understands their Reliability Charter, has specific deliverables and actively manages efforts via the
Council. Key members know and perform their roles. Core roles are staffed and 100% dedicated (Managers,
Supervisors, Planner/Scheduler, Storeroom only do their roles). Training plans cover site and are actively executed.
Proper “Asset Coverage” exists with each being protected by correct Reliability Strategies (PM + PdM technologies).
Root Cause Analysis is fully mature with adequate support. Precision methods (alignment, tensioning, etc.) used
where appropriate, reflected in Job Plans. Adequate staff trained and required tools are available and controlled.
Lowest ARGA element score < 5.0
AER > 85% for at least 6 of last 12 months
Proactive work >40% with PdM + CPdM >20%
Spares Inventory Turnover Ratio 0.5 – 0.75
Maintenance Cost/RAV between 3 – 4%
Maintenance UDT 1.5 – 2.0%, with < 4 months above 2.0%
Asset Care is aligned to the (6)
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Global Reliability Standards:
CM = Computerized Maintenance Management System (SAP)
WM = Work Management
OR = Organizational Readiness
IM = Inventory Management (Spares)
PO = Performance Optimization
RS = Reliability Strategy
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“The Best of Bunge Everywhere”
Expanded Capabilities / Driving Improvement
Asset Care Level 2
Level 2 Capabilities
What one should see at a site
CM - Scheduling and Reporting
SAP Revisions are being used, where applicable, to improve Planning and Scheduling processes. Proper use of
SAP has enabled a wide range of standard metrics and reports, including MTTR, MTBF, etc.
IM - Spare Part Criticality, Inventory Control,
Cycle Counts, Inventory Analysis
Spares Criticality drives stocking strategy. Cycle Count accuracy tracks ~95%. Kitting on ~50% of Orders requiring
materials (i.e. 50% of planned materials are procured as-needed, not taken from stock). Inventory Analysis is done
on a set frequency to optimize inventory settings. Obsolete inventory is eliminated. Inventory levels and Turnover
Ratio continue improving. The storeroom is noticeably smaller and far more efficient as indicated by metrics.
WM- Work Scheduling/Execution, Proactive
Focus
Work Schedules are created for each week and for each Technician. Techs have taken System Ownership of
execution for daily schedules. Supervisor role transitions to provide heavy “support” to Technicians. The amount of
proactive work is increasing with more PdM being done. Repair costs and UDT are dropping and overall site
performance is more stable. Schedule Compliance and Wrench Time both continue to increase and stabilize.
PO - Leading Indicators, CI Strategy
Additional metrics posted and tracked. CI culture is taking root within the site, aligned with the rollout of Action
Circles. Maintenance/Reliability CI strategy is co-developed by the Managers and Technicians (who now have
System Ownership). Equipment and Processes are ran at Standard Rates.
OR - Exec Support, Budget Mgmnt, Change
Mgmnt, Technician & Operator Ownership,
Action Circles/Focus Groups (initial use)
Reliability a standing topic of site management reviews. Zero-based budgeting is used. CAPEX supported by data.
Formal Change Management processes in place. System Ownership within Maintenance and Operations, involving
100% of Technicians + Autonomous Maint in Operations. Action Circles rolled out in priority areas within the site and
have all the support required for them to be successful (these are employee-led).
RS - Predictive Technologies
Predictive Maintenance strategies are reviewed on a fixed schedule and optimized. PdM related savings and costavoidance benefits are captured and communicated throughout site. PdM tools are used for ad hoc troubleshooting.
Site has skills necessary to review and take action on PdM results. Metrics/Costs are improving and more stable.
Lowest ARGA element score between 5.0 - 8.0
AER > 85% for at least 8 of last 12 months
Proactive work >60% with PdM + CPdM >30%
Spares Inventory Turnover Ratio 0.75 – 1.00
Maintenance Cost/RAV between 2 – 3%
Maintenance UDT 1.0 – 1.5%, with < 4 months above 1.5%
Asset Care is aligned to the (6)
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Global Reliability Standards:
CM = Computerized Maintenance Management System (SAP)
WM = Work Management
OR = Organizational Readiness
IM = Inventory Management (Spares)
PO = Performance Optimization
RS = Reliability Strategy
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“The Best of Bunge Everywhere”
Expanded Capabilities & Excellent Results
Asset Care Level 3
Level 3 Capabilities
What one should see at a site
CM - Automated Work Orders
Work Orders or Notifications are created automatically by SAP based on results from Inspection Orders (Measuring
Points) or from plant floor systems via online Process Variable monitoring, field devices (vibration, temperature, etc.)
or process performance data.
IM - Kitting, Spares Life Cycle Analysis,
Point of Use, fully automated
procurement/payment
100% of Planned Orders with materials are Kitted, maintaining maximum Wrench Time and Schedule Compliance.
Point-of-Use stores are managed for unique or high volume parts. For qualified parts, SAP will automatically procure
and pay with no human intervention. Life Cycle Analysis done on appropriate spares. Inventory is at minimal levels.
WM- Outage Mgmnt, Contractor
Qualification/Management
All planned outages are managed in detail using Microsoft Project or similar (scope, tasks, dates, duration, costs,
resource requirements, task dependencies, etc.). Outage execution metrics used for safety, schedule compliance,
costs and include meetings, daily statuses, minutes, debriefs and metric tracking. All work done on equipment is
captured in SAP and the outage uses SAP Revisions to group Orders. Contractor management in place.
PO - Effective CI
Multiple Continuous Improvement projects underway, involving employees of all levels. CI processes are data-driven,
fully mature and include ready access to funding and other resources. Reliability CI is driven by analytics and results
tied to KPIs that are tracked to confirm deliverables are met and sustained. Recognition of efforts is easy to see.
OR - Value-added Training, SME network,
Action Circles/Focus Groups (site wide)
Training plans tied to improvements or skills have supporting data confirming benefits were realized. Employees
know/use local SMEs; site leaders know/use Regional/Global SMEs. Technicians and Operators fully engaged in
Action Circles and use them to manage activity sets in assigned areas, tracking performance and driving results.
RS - Analytics Monitoring, RCA, PM/PdM
Optimization
Analytics are monitored and used to trigger proactive efforts. RCAs are used effectively (along with similar tools) and
corrective actions are documented and results confirmed. PM/PdM optimization is driven by Analytical data reviews
held on a set frequency or when major events trigger. Costs and metrics are at record levels and stable.
All ARGA element scores > 8.0
AER > 85% for last 12 months
Proactive work >80% with PdM + CPdM >40%
Spares Inventory Turnover Ratio > 1.00
Maintenance Cost/RAV < 2%
Maintenance UDT < 1.0%, with < 4 months above 1.0%
Asset Care is aligned to the (6)
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Global Reliability Standards:
CM = Computerized Maintenance Management System (SAP)
WM = Work Management
OR = Organizational Readiness
IM = Inventory Management (Spares)
PO = Performance Optimization
RS = Reliability Strategy
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“The Best of Bunge Everywhere”
Ask these Asset Care questions when at a site or on call
LEADING QUESTIONS
FOLLOW-UP QUESTIONS
What is your % SCHEDULE
COMPLIANCE on Preventive and
Predictive related work ?
What do you need to achieve 100% ?
Are you capturing UDT at the
EQUIPMENT level and how are you using
the information ?
How do you optimize Labor, Materials
and other Resources ?
Is every critical asset covered by an ideal
RELIABILITY STRATEGY ?
When and How do you optimize it ?
Does data show the site is clearly in
control of UDT, reducing it year on year ?
Is this tied to Schedule Compliance,
visibility of Equipment-level UDT or
quality of your Reliability Strategies ?
Up next: Self-Assessment Checklist
27
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Self-Assessment “structure” ties back to the Standards & Deliverables
BCN
Clicking on a Standard in the Assessment tool, opens that section and
gives you the questions/guidelines and scoring for required “Capabilities”
BCN
BCN
BCN
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Self-Assessment Checklist for Asset Care
Structured to tie
back to Standards
& Capabilities
Requirements
Scoring
Findings
How to confirm
Score Summary summarizes Capabilities,
Deliverables and GAPs
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Final Questions / Comments / Follow-Ups …?
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Asset Care
Feedback:
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