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Looking for info on pdm programs

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micjk

Mechanical
May 20, 2002
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I'm looking for any info (links to articles, communications with other program administrators, cost saving calculation methods, etc.) to help with justifying the benefits of having a proactive/predictive based maintenance program. As we are all aware, the benifits can be astronomical in dollar savings if a program is set up and run efficiently. Due to organizational changes and the economic state of our buisness, we have been asked to prove the benefits of a pdm program. I know and feel that it can be done, but having inherited a program that has been "tinkered with" for 8 yrs and never really done more than glide along (feet slightly off the ground), would appreciate any and all leads to the above mentioned info. My cohorts and I believe that with our dedication and enthusiasm we can take our program from gliding status to soaring status.
Thanks in advance for any replys,
Sincerely Roy Gariepy
Maintenance and Reliability Dept.
Bayer Corporation Dorlastan Fibers Div.
Goose Creek, South Carolina USA
 
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Bayer has some established PdM programs - have you talked to some of your peers - say the Baytown, TX facility? Happy to discuss at dgallagher@reliabilitydirect.com
 
We set up several systems for General Motors in the US and we all had to go through the business plan and cost savings route.
The bottom line is that you have to show that application of PdM in your organization can save money by achieving one or more of the following:

1) Reduce unplanned downtime by avoiding unforseen failures.
2) Significantly reduce repair costs.
3) Reduce maintenance & production manpower costs.

To go through points one at a time:
1 - The major cash gain to most industries is avoiding unplanned production outages. Find out the cost to lost production on major lines per hour. Then estimate how much down time you can avoid. Multiply one by the other and extrapolate it for one year and you will probably be shocked and amazed by just how much you really can save.

2 - Go back through your records and look at the major nmachinery crashes you had last year. Go to the industrial engineers and try to get a cash value of how much each one cost in terms of replacement/refurbishment. Then estimate how many of these you could have avoided if you had been doing PdM properly. Convert this into a cash sum. Don't forget to deduct the likely cost if you HAD found the problem. An example would be a motor bearing failure. If left to deteriorate the bearings would have collapsed and the rotor may well have fallen into the stator needaing a complete rewind or a new motor. If you had found it you would only have had to pay for new bearings.

3 - Some people don't like to do this one for obvious and political reasons. If you want to go ahead with this one, you need to estimate just how much extra manpower (including overtime) was spent on last years failures and use that as a direct cost. From your calcs in 1 and 2 (above) then figure out how much of that extra manpower would NOT have been used if you had been doing PdM properly.

It is important that in your business case you do not overstate what PdM can do for your company. We tend to make a PFA (potential failure analysis) for each machine type that we analyze. In the PFA we critically examine all the potential failure modes and show how we can predict that failure using various PdM techniques. This way you show the bean counters that you are working within achievable boundaries. How many sales men have come to your plant and told you "Sure - our equipment is the best there is and it will make you the best PdM system in the world!!!" without giving you any clear guidelines on how to do the politics.

As a rough guide, you should look at your first years budget being about 10% to 25% of the savings estimate you made in 1 2 and 3 above. This should include manpower costs for the PdM team, equipment purchase and external engineeering support. If it's going to cost you much more than that it might not be worth the effort.

We took joint first at the P/PM System of the Year for a system we set up for "a major auto manufacturer" in the mid-west. In the first year we made over $4,000,000 in cost avoidance and had a budget of just under $500,000. That was a large plant and we set up vibration analysis, thermography, ultrasound and motor current analysis.

If you need more detailed information let me know.

Good luck

Ron Frend
ron.frend@predicon.net
 
Micjk,
There are many "intangible" benefits to implementing a proactive/predictive program. One such benefit I have seen is that there is an added cohesiveness to the group involved in RCA, predictive and proactive maintenance regimes. It brings you closer to the reality of what is actually happening on the shop floor, instead of drawing conclusions from behind a desk. You will rely on the expertise of many who have worked on the equipment and find that concentrating on the basics will give you the largest chance of success. I am also confident that you will find that it is easier to train the people on the floor, in engineering fundamentals and problem solving techniques, rather than attempt to understand all there is to understand about the equipment you are trying to save. If you need any assistance I have many documents that may help you avoid some of the pitfalls that I have run into. I spent seven years as a construction millwright before going back to school to finish my degree, so I have a special insight into the "real" shop floor. Remember, there are numerous excellent approaches, but only a few that you will be able to sell, and succeed with.

John MacKenzie
Reliability Engineer
Abitibi Consolidated of Canada Inc.
 
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