April 07, 2008
Updates and Starting to Address the Issue of CMMS and Cost Based Maintenance
Updates concerning SBD and a discussion why it is so important to put correct data into CMMS programs. By Howard W Penrose, Ph.D., CMRP
A few exciting things happened this past week. First, ‘Physical Asset Management for the Executive’ sold out its first printing within two weeks of its release on March 12, 2008. We have responded by replacing some of the marketing stock and the first part of the second printing so that books are available. We are also including an incentive (see below) to increase the volume of books for greater attention to the subject. I have also been asked to do an internet radio lecture to corporate executives, based on the book, throughout the USA at 11am on June 18, 2008. Details to follow. The second event is that SUCCESS by DESIGN and the SUCCESS by DESIGN logo are now Registered Service Marks for ‘consultation in the field of physical maintenance of industrial and commercial facilities and publishing. SUCCESS by DESIGN’s publisher registration number, established in 2001, is 9712450 for textbooks, technical, non-fiction, and sci-fi/fantasy.
To continue our review of R&M myths, this week we will begin a discussion of point cost issues. This is another area where our own experiences and our corporate leadership focus as opposed to the more important R&M throughput.
Some time ago I led a University of Illinois at Chicago Energy Resources Center (UIC-ERC) project on food processing in the state of Illinois. As the Senior Research Engineer for the UIC-ERC, I was tasked to implement my work on industrial assessments for energy, waste stream, process, and reliability. During the assessment we discovered that mechanical seals at a corn miller had an average life of 4-6 weeks and all were leaking. When we investigated we discovered that the original seals lasted 18 to 24 months. The decision was made by purchasing based upon reducing the cost per seal from $1800 to $900 by converting from double seal cartridges to single seal cartridges. In our present perception, I picture you sitting there remembering the last time something like this happened to you. You also think to yourself something to the effect that those purchasing people don’t understand anything, yet they keep making such decisions (OK, OK, I’m ex-Navy. My sentiments tend to be a little stronger too).
However, this was not the end of the story. Until our survey, senior management nor purchasing was aware of the bad decision. They simply did not have the data because frustrated maintenance staff stopped entering data into the CMMS and, instead of replacing seals, placed water hoses over the seals to remove leaking product. Without information, the decision makers could only make the decision that the change was a positive cost improvement.
In effect, such situations are the direct result of a lack of communication between maintenance and management. Sometimes our best method for communication is our CMMS system, especially when a ‘cost improvement’ is being attempted.
In another example, we were surveying a site that had concerns about maintenance manpower for their powerplant. When we arrived, the supervisor reported that he had lost an additional five people and they were no longer able to perform their basic PM’s. When we investigated this one further, we found that they were using blanket purchase orders for parts and were doing basic repairs, while advanced repairs were sent out. They were only reporting completed PM’s and outsourced repairs in the CMMS system, but not any of the other internal work. The result is that decision makers had bad information in order to make manpower decisions, so personnel were allowed to retire, quit, or transfer without replacements.
The use and proper reporting of work into the CMMS system provides a level of information to management to verify decisions and understand manpower requirements. While it can also be used to support work used to reduce maintenance times and to identify opportunities, these should be embraced and not shunned.
Sincerely,
President, SUCCESS by DESIGN
Executive Director, Institute of Electrical Motor Diagnostics, Inc.
Member: National Writers Union (UAW 1981) and International Federation of Journalists
Author: “Physical Asset Management for the Executive (Caution: Don’t Read This If You Are On An Airplane)” and “Electrical Motor Diagnostics: 2nd Edition”
