Chemical Engineering May 2016 - 63

Labor and Materials Spending for All
Maintenance Categories
Q1
Q2
Q3
Q4
Capital Turnaround Routine Total
Figure 7. Shown here is a conceptual representation of
the relationship between maintenance-cost focus and reliability
focus. Reliability focus is the path to profitability
their spending in this area to be lower
and, as discussed further below, it is.
We also can surmise from what
we said about mechanical availability
that top performers have less fixed
equipment cost than other performers
and that they spend less money
on reactive work.
the Ram study annualizes turnaround
costs, and while on an annualized
basis, those costs are the
second most significant cost, they
are still lowest for top performers.
even though this is the case, top
performers do not predetermine the
amount they will spend on each turnaround
prior to understanding what
needs to be done. the low annualized
turnaround cost is due to the
sustainability of the top-performing
culture. top-performing organizations
are not afraid to spend significantly
more on a specific turnaround
than the average - if it is needed to
minimize unplanned events before
the next scheduled downtime. they
also do not overspend in the areas of
inspection and testing, because their
ongoing data collection and proactive
inspection techniques keep
them informed both before and after
turnarounds. top performers are
also constantly updating the schedule
and plan during the turnaround
to create the most efficient work flow
and work plan while taking into account
the resources available.
many who are reading this article
are probably wondering why this
section on costs is so short. Well, it
was delivered that way deliberately
62
to drive home the point that cost for
top performers is truly a result of their
cultural approach to their work. their
focus on reliability drives mechanical
availability, which determines how
much they spend.
Reduced human & business risk
data from the Ram study also point
to two significant areas of importance
for any organization: human risk and
business risk.
Limiting human risk. the interesting
thing about human risk - how safe
your employees are - is that it actually
could be called human reliability.
if the employees of an organization
are safe, then they are demonstrating
human reliability because they
are practicing the appropriate behaviors
to keep themselves safe on a
continuous basis. if you think about
employee safety in relation to the
top performers' definition of reliability,
you will realize that reliability, like
safety, is generated by an organization's
people. if employees constantly
and consistently meet their commitments,
they're reliable, and if one
of those commitments is to comply
with all of the safety rules, then those
employees will not be injured - they
will be safe. so employee safety truly
is an aspect of human reliability.
total maintenance work hours limits
risk, and planned work is much
safer than reactive work; these two
facts alone tell us why anyone doing
maintenance work for a top-performing
organization is much more
likely to do that work safely or at
Figure 8. This graph of labor and materials spend
for all maintenance-spending categories shows
that top performers (Q1) spend the least amount in
all categories
least under circumstances that lead
to safe work.
let's take a look at the data revealed
earlier in this article to see
why top performers are generally
also the safest, most reliable and
even the most environmentally reliable
performers.
Ram ei Q4 performers can be
characterized as follows:
* they work twice as many hours
as top performers
* they work at least double the
percentage of unplanned work
* they have a percentage of emergency
work 2.5 times higher than
that of top performers
Considering all of these high-risk
activities together, one can see how
Q4 performers potentially have much
higher human risk. Q2 and Q3 performers
also work more hours, perform
less planned work, and have
a higher percentage of emergency
work than top performers - so they
too see higher human risk. safe work
and planned work correlate to injuryfree
work and lower human risk.
Limiting business risk. What creates
business risk in a manufacturing
organization? the following are signs
of business risk from a purely financial
viewpoint:
* loss of sales
* Financial retribution for poor
service
* the customer moving to another
supplier
signs of business risk from a purely
business standpoint are:
* poor quality
* environmental issues
* Regulatory issues
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