Value Driven Maintenance
Discover The Hidden Treasure In Your Organization
Mark Haarman, Managing Partner
Birmingham, 18 April 2012
Agenda
4.
Continuous
Improvement
1.
Maintenance
Dilemma
2.
Value Of
Maintenance
2
3.
Most Valuable
Maintenance
Organization
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Importance of Maintenance is Still Neglected
• Each management will tell you
that maintenance is important
• “Without maintenance we will
have no production and no safe
working facilities”
• However, in economic
downtimes maintenance is
primarily seen as cost center
• Maintenance manager is not able
to show the added value of
maintenance ....
• ... because he/she does not
speak the language of the board
• With all consequences as such
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Value Driven Maintenance® (VDM)
• VDM is developed by Mainnovation in close
cooperation with leading maintenance
organizations from different industries
• VDM makes the economic added value of
maintenance quantifiable and supports the
priority setting
• VDM facilitates the development of the Most
Valuable Maintenance Organization (MVMO) ...
• ... and makes maximum use of proven best
practices and is fully embedded in leading EAM
systems
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Companies Using VDM
Food & Beverages
Life Sciences
Paper & Pulp
Manufacturing
Energy & Utilities
Water
Oil & Chemicals
Marine
Public Transport
Ports & Roads
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Agenda
4.
Continuous
Improvement
1.
Maintenance
Dilemma
2.
Value Of
Maintenance
6
3.
Most Valuable
Maintenance
Organization
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Maintenance Value Drivers
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Case - IFF
• Leading company in flavors and fragrances
• European production centre in Tilburg, The
Netherlands
€0
• Company data:
• Replacement asset value = € 105 M
• Technical availability = 87%
€ 50 M
€ 12 M
• EBITDA = € 40 M
• Maintenance costs = € 2.8 M
• SHE-factor = 1.0
€1M
• Value MRO inventory = € 1.1 M
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Case - BP
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Agenda
4.
Continuous
Improvement
1.
Maintenance
Dilemma
2.
Value Of
Maintenance
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3.
Most Valuable
Maintenance
Organization
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Maintenance Competences
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Measure Performance with Control Panel
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Benchmark Performance
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Online Benchmarking With myVDM.com
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Case - GlaxoSmithKline
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Maximum Use of Proven Best Practices
RBI
SLA
RCM
Asset Based
Costing
TPM
Operator
Maintenance
OEE
Supply Chain
Integration
Condition
Monitoring
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Processes, People & IT
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VDM Process Map
3.1
Collect
maintenance
related SHElegislation
2.1
Manage
PM strategy
1.1
Plan
equipment
performance
7.1
Receive and
stock spares
7.7
Create
purchase
requests
1.2
Monitor
equipment
performance
1.3
Analyze
performance
losses
7.2
Monitor
inventory
value
7.3
Issue spares
7.8
Review
proposals
7.9
Manage
frame
agreement
5.1
Receive
notifications
7.4
Count
inventory
7.10
Send
purchase
orders
7.5
Manage
catalogue
7.11
Match
invoices
8.1
Develop
outsourcing
strategy
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3.2
Translate SHElegislation in
PM strategy
3.3
Measure
SHE factor and
performance
2.2
Identify
critical spares
2.3
Manage PM
schedules and
task lists
5.2
Prepare
work orders
5.4
Schedule
work orders
5.3
Manage
work permits
5.6
Manage
project
6.1
Execute
maintenance
6.2
Register
work order
results
7.6
Transport
spares
7.12
Manage
suppliers
8.2
Supervise
contractor
2.4
Evaluate
PM
strategy
5.5
Issue
work orders
4.1
Budget
maintenance
costs
4.2
Monitor
maintenance
costs
4.3
Analyze
maintenance
costs
4.4
Issue
investment
request
4.5
Claim
warranties
4.6
Claim
damages
9.1
Manage
Skill profiles
9.2
Manage
personal
certificates
9.3
Manage
workforce
capacity
10.1
Manage
equipment
data
10.2
Manage
equipment
permits
10.3
Manage
drawings and
manuals
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9.4
Register
10.4
Collect real
time condition
data
9.5
Calibrate
tools
Embed Processes in IT and Organization
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Case - Volvo Cars
• Volvo Cars manufactures cars in 5 plants
in Sweden and Belgium
• Volvo Cars is well known because of its
innovative maintenance approach and
TPM awards
• After years of focus on Asset Utilization
Volvo Cars wanted a maintenance model
that helped them to find the right balance
between uptime and costs
• Volvo has adopted VDM as their standard
maintenance management philosophy
• In 2005 they started with the
implementation of standardized VDM work
processes:
– based on internal and external best practices
– fully supported by their Maximo system
• 2010: 50% cost reduction on biggest plant
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Agenda
4.
Continuous
Improvement
1.
Maintenance
Dilemma
2.
Value Of
Maintenance
21
3.
Most Valuable
Maintenance
Organization
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Continuous Value Improvement
• Growing in professionalism means
creating value
• When realistic achievable level of
professionalism is reached, the
value potential is utilized
• Automatically, the secondary value
driver becomes the dominant one
• MVMO needs to be redesigned
based on the new core competences
• Without loosing the achieved level
of professionalism of the other value
drivers
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Know Where You Are!
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Case – Conagra Foods
• Leading Food Company in US with 100
plants
• With Conagra Performance System
(CPS) towards World Class Maintenance
• VDM programm based on TPM and RCM:
– Internal/external benchmarking
– Standard work processes
– Standard SAP EAM
– Equipment Reliability Improvement
• Global and local performance
management with Maintenance KPI
Dashboard (VDM Inside)
• Built in leading Business Intelligence
software (SAP Business Objects and
IBM Cognos) and fully integrated with
SAP EAM and Maximo
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VDM Inside
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Thank you!
Mark Haarman | Managing Partner | mark.haarman@mainnovation.com | +31 621553313