Slaying the Backlog Dragon - PowerPoint Presentation

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Slaying the Backlog Dragonusing Industry Best Practices

John Reeve, Author, CRL, CMMS Champion

Advanced Concepts in Planning & Scheduling

Jan. 29

th

Monday

1:30pm

–

2:15pm

Champions V

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Scott Stukel, CMRP Director, Energy/Utilities & Asset ManagementTRM - Total Resource Management

2

BSME, EE/CE Minors – Kettering University (formerly GMI)28 Years of experience in Engineering, Maintenance and Asset Management Practices & Technology16 Years of Asset Management & EAM Consulting ExperienceSeasoned Asset Management, ISO-55000, IIMM Practitioner and Advisor Former NASA Deep Space Sr. Engineer & Reliability/RCM DirectorGuinness World Record Holder, Engineered Worlds Largest Rice Krispies Treat for Charity/Reality TV Program – 10,314 lbs

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Asset ManagementJourney

COST/SCHED. ANALYSTs

MX S/W CONSULTANTs

CMMS PRACTITIONERS

RELIABILITY LEADERs

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Before we start, I’ve got questions

What is your role? [going around the room]

Do you have Planners in the

organization?

Do

you have

Schedulers?

Are

they the same person/role?

What if you have neither?

>>> if NO to all of the above

….

Do

we give up all hope of making a

plan?

Do

we forget about making a Schedule?

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Planning, Scheduling and Backlog Management

Main Topics All about Backlog Work Priorities – different techniques Planning, the “well planned” Work Order Schedules and Scheduling Measure and MonitorImprove work force productivity and job safety---------------------------------------------------------Question: What exactly is the purpose of an asset management system?

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Different Types of Backlog

Planning Backlog

Scheduling Backlog

Execution Backlog

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Author #1About 2 to 3 weeks of backlog would be usual in an effective and well-regulated maintenance environment.Author #2Backlog forward resources (Crew weeks equivalent 4 - 5 weeks)Author #3A standard backlog of one week may not be a problem for your organization,….Author #4Any (work) backlog, other than deferred maintenance, would be bad.Author #5To target. Say, about 4 man weeks.Author #6Backlog weeks, which list all deferrable work not yet scheduled for completion. Goal: Four-six weeks.Author #7Non-outage CM work order count greater than >50 per facility/area (for sites with multiple areas)…would be bad.Whereas, elective maintenance work order count > 450 per facility, would be bad.Author #8There is no answer. Which is exact or correct for any industry.Author #9To help the planning process it is normal to run with approximately 2 man weeks of backlog per technician. If you are constantly below that figure then you could be over-manned. If the Backlog climbs to 4 man weeks then consider overtime working or bringing on additional resources.Author #10Jack R. Nicholas, Jr., P.E., CMRP stated that the acceptable range of man-weeks of backlog per technician is 3-5 where 4 is ideal.

Maintenance Backlog

---

M

easures the work necessary to prevent the deterioration of an asset or its function that has not been carried out, but has been identified to be done.

BACKLOG

ACCURACY REVIEWS

When reviewing new work requests….a rigorous examination of the work requested needs to be carried out. This will remove duplicate work, finished work, unwanted work and modifications (modifications need to go through the 'management of change' process, modifications need engineering and fiscal approval, a modification is not maintenance work) out of the list.

ACCEPTABLE BACKLOG SIZE

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Categorizing the Backlog

What is maintenance backlog made up of?Scheduled PM and PdM workCorrective maintenanceEnvironmental & RegulatoryHSE relatedProject Improvement & Project SupportAdmin/Business Support

As Maximo users, we typically group work using the WORKTYPE field

.

I use the term “

trilogy

” to identify 3 critical fields: worktype, priority and status as essential to work management and analytical reporting. That said, it is

very important to put a fair amount of thought into this design

.

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Why Categorize Work?

Know if you’re keeping up with incoming & existing backlogForecast needed resources; labor, materials, funding (and even justify more resources!)Identify candidates for focused attention, rehab, or investmentTraditionally Backlog has been measured in effort , i.e. weeks, days, hours.. Modern backlog should be measured in effort as well as cost. This topic also gets into defect and deferred maintenance tracking.“Our non-critical work backlog is 3760 work hours” “Our deferred maintenance backlog is $566,700”

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It is extremely important to Trend Backlog Growth

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Maintenance Planning

”What do you mean I need to think ahead? I just get the work order,…. go get stuff, and get er done”

The Planning step is skipped altogether, ie.

Emerg/Urgent

Or, this work might be basic enough to just apply basic estimateOr, this work requires formal planning

PlannableWork

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What does a good job plan look like?

The level of complexity depends on several factors:

The

complexity of the task

. Tasks which have multiple steps that must be performed in specific sequence, or contain unusual operations, must be spelled out

precisely.

What

specific data is needed to complete the task with

repeatable results

? Critical numerical data, such as torque values and clearances, specific type of lubricant, or special tools, should always be spelled out and never left to

memory.

The

criticality of the procedure’s outcome

. How important is it that the job is done exactly right? As the tolerance for poor outcome or any variation in the outcome decreases, the need for specific detail required to ensure a consistent outcome increases sharply.

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Maintenance Planning – pieces and parts

The “well planned” work order should contain:

Clear description

of the work to be done.

Location, Asset, or Cost Center/Charge Code

where the work is needed

Priority/work urgency

Work plan steps

and craft/material estimates for:

Crafts(s) required and quantity

Hours per craft required + number of staff

Materials/spare parts

Tools or special equipment needed to perform work

Do we capture meter data? or, asset condition?

Safety/hazard

, environmental, regulatory requirements

Level of Risk?

Are

outside services

required?

Asset down

required?

Cost estimate

, usually derived automatically from work plan

Guideline: A well planned work order is crucial to quantifying Backlog!

Error Check: No PM-JobPlan records should exist without a craft estimate.

Question: How would you setup an Asset for Run-to-Failure?

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What are the different types of Schedule?

Project ScheduleShutdown-Turnaround-Outage Schedule4-week Look-aheadWeekly ScheduleDaily Plan

Unfortunately, many organizations do not create any schedule at all.

Which type is a best fit for asset/facility maintenance?

Why is this?

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Caution:

Sometimes the stakeholders start discussing what scheduling software to purchase before they establish requirements

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Building a Project Schedule

Identify the activities

Duration

Priority

Sequence

Determine critical path

Apply resource estimates

Perform resource leveling

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This is one idea for work prioritization.

You may have a better one.

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Planner/scheduler Role

Planner/Scheduler Activities

Screening

– The Scheduler reviews the work plan and makes any necessary modifications to priority, additional estimate details, and/or designation if work will be performed by a specific crew, specialty, or tradesperson.

Build

the Schedule

– Oversee Backlog

&

4-Week schedule

.

Track schedule adherence

Trend backlog growth

[Planner & Scheduler role]

Coordinate

with Operations

& Facilitate

the weekly scheduling meeting.

Support

Supervisors/Leads

with executing the schedule

.

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Supervisors should be making a Daily Plan, each day, from the Weekly ScheduleBest practice is to have the crew supervisor create daily schedules as the week unfolds. Reason: There is too much churn in the daily execution of maintenance to create the daily schedules a week ahead of time. Therein, the first-line supervisors should create the daily schedules, assign names, coordinate lockout/tagout (LOTO), and deal with new urgent work that cannot wait.Many/some scheduling practitioners and CMMS programs advocate laying out the entire next week in advance, specifying specific days for each work order, as well as technicians and hour slots assigned to them. Their reasoning seems to be that because each work order has a time estimate, the schedule should dictate exactly when the work should be performed for best coordination. [JR} just because the scheduling software permits this type of thing, doesn’t mean you should do it.More Reasons Why1. Maintenance time estimates are not very accurate for individual work orders. 2. Maintenance is simply not assembly-line work. 3. Further, most plants have a significant amount of new urgent or emergency work.

Doc Palmer Speaks out on Daily Plan Creation

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I’ve got Questions

What do you do if maintenance does not follow the schedule?!What do you do if the backlog is not accurate, i.e. the Statuses are incorrect? Or priorities are missing? How do you code a job which is on HOLD? If it is on hold, how do you enter remaining hours (as estimate)?

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What is your Scheduling Process?

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How do you determine what should be worked on first?If the backlog has 1000 work orderswhat goes on the weekly schedule?

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Everything may be important but you can’t do everything, everyday.

Backlog

Management

Using a

Risk-based

Prioritization

Matrix

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Prioritization Matrix – for ranking the open backlog

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Asset Criticality

Ranking – example #1

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Asset Criticality

Ranking – example #2

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Other considerations for Matrix

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Benefits of Planning & Scheduling

The Business Case for Planning & Scheduling

It’s all about the bottom

line…

or is it?

How do you respond?

Simply stated, a

10%

increase in productivity

for a 50 tradesperson maintenance organization would yield approximately

9,600 more hours

to do work.

That’s approximately 5 more tradespersons worth of work output!

Will that enable you to significantly reduce overtime?

What could that do to your

backlog

?

What initiatives could you undertake? (PM Optimization, Predictive Program, Capital or Special Projects, etc.)

What are the secondary benefits? (operations efficiency, increased equipment availability/throughput)

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Benefits of Planning & Scheduling

The Business Case for Planning & Scheduling

It’s all about the bottom

line…

or is it?

But wait, there’s more…

Effective maintenance Planning & Scheduling conservatively results in 10-15% reduction in Inventory Expense.

For an organization that spends $1M per year in maintenance materials, this would yield approximately

$100-150K savings annually!

In addition, you can expect to reduce amount of inventory required to be held in the warehouse, resulting in a reduction of carrying and handling costs.

Can you afford not to implement effective Planning & Scheduling

?

Do you know where your backlog is and have a plan to manage it?

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Path Forward

That all sounds great, but how do we get there?

Here’s How:

Understand where you are, where you want to go, and what benefits you can expect to achieve.

Develop a workable implementation plan and get management behind it.

Execute your plan.

Train and empower your people.

Measure progress and continuously improve.

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What should my ratio of supervisor, planner/scheduler, or maintenance engineer to craftsperson be?

Supervisor to Craftspeople 1:10Planner/Scheduler to Craftspeople 1:20Maintenance Engineer to Craftspeople 1:40

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Measure your progress to continuously improve

Institute actionable, realistic metrics & KPIs to measure progress and identify needs for focused improvement

“Metrics” is a collective term used to categorize reports, charts, graphs, etc. intended to measure aspects of an organization’s activities and performance

Communicate progress to stakeholders & management and facilitate action

Planning & Scheduling Group plays the key role in making it happen

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Planning & Scheduling Metrics/KPIs

NameDescriptionDefinitionBenchmark ValueCurrent Value (if available)Targeted Goal/ TimeframePercentage of Planned MaintenanceWhat percentage of completed work orders were plannedCount of planned work orders divided by count of all work orders> 85%Not availableTBDPlanning EffectivenessDifference between planned work hours and actual hours spent to complete workTotal hours planned divided by total maintenance hours+/- 10%Not availableTBDRatio of Planned & Scheduled MaintenanceRatio of Planned & Scheduled Maintenance to total hours workedTotal hours of planned & scheduled work divided by total hours85-95%Not AvailableTBD

Key Performance Indicators – Work Planning

NameDescriptionDefinitionBenchmark ValueCurrent Value(if available)Targeted Goal/ TimeframeSchedule Compliance*Ratio of work completed to work scheduledWork Completed divided by work scheduled> 90%, Upward trendNot AvailableTBDPM Schedule Compliance*Ratio of PMs completed to PMs scheduledPM work Completed divided by PM work scheduled> 95%, Upward trend Not AvailableTBDScheduling EffectivenessDifference between weekly hours scheduled for work and actual hours taken to complete workActual work hours divided by scheduled hours (weekly) +/- 10%Not AvailableTBD

Key Performance Indicators – Work Scheduling

* Schedule

compliance metric needs to take into account minimum schedule or total availability to discourage schedule manipulation to boost compliance numbers, initially the weekly schedule should leave 10-15% of available time free to handle emergencies or schedule injections

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Something

to

Remember

Shifting

f

ocus to Reliability