““Emerging trends to achieve Emerging trends to achieve Zero Down Time in the Era ofZero Down Time in the Era of

Maintenance Out Maintenance Out Sourcing”Sourcing”

Pinaki Roy

It is the task of the It is the task of the maintenance function to maintenance function to support the production support the production

process with adequate levels process with adequate levels ofof availabil i ty, rel iabil i ty availabil i ty, rel iabil i ty andand operabil ity operabil ity at an at an acceptable acceptable

cost.cost.

Basic Maintenance Objectives Basic Maintenance Objectives

Maintenance PhilosophiesMaintenance Philosophies

InspectionsConditionMonitoring

Predictive

ScheduledOverhaul

ScheduledService

ScheduledReplacement

Use Based

Preventive CorrectiveDesign-out

MaintenanceStrategies

THE MAINTENANCE THE MAINTENANCE TRIANGLETRIANGLE

CONTROL-CMMS

PLANNING

PROCEDURES

PHILOSOPHY

OPERATIONS

Measurement of MaintenanceMeasurement of MaintenanceDefinit ionsDefinit ions

““ Available Hours” Available Hours” means Maximum Theoretical Hours means Maximum Theoretical Hours minus total Engineering Down Time.minus total Engineering Down Time.““ Maximum Theoretical Hours” Maximum Theoretical Hours” means the total effective means the total effective hours available for mining operations.hours available for mining operations.““ Engineering Maintenance Time” Engineering Maintenance Time” means all equipment means all equipment down time due to planned maintenance.down time due to planned maintenance.““ Engineering Down Time” Engineering Down Time” means all equipment down time means all equipment down time due to un planned maintenance and breakdown repairs.due to un planned maintenance and breakdown repairs.““ Availabil i ty” Availabil i ty” means Available Hours divided by Maximum means Available Hours divided by Maximum Theoretical Hours and expressed as a percentage.Theoretical Hours and expressed as a percentage.““ Uti l ized Hours” Uti l ized Hours” means the operating hours taken from the means the operating hours taken from the equipment hour meters. On some equipment utilised hours equipment hour meters. On some equipment utilised hours have to be expressed more specifically e.g. on drilling have to be expressed more specifically e.g. on drilling equipment there are percussion hours and engine hours.equipment there are percussion hours and engine hours.““ Uti l izat ion” Uti l izat ion” means Utilized Hours divided by Available means Utilized Hours divided by Available Hours and expressed as a percentage.Hours and expressed as a percentage.

Objectives of Maintenance Objectives of Maintenance in Miningin Mining

Availabil i tyAvailabil i ty - Uptime, non-failed state. - Uptime, non-failed state.

Higher Availabil i tyHigher Availabil i ty = More Tons = More Tons

Reliabil i tyReliabil i ty - MTBF, MTTR (number of - MTBF, MTTR (number of breakdowns)breakdowns)

(Mean Time Between Failure, Mean Time To (Mean Time Between Failure, Mean Time To repair) repair)

Operabil i tyOperabil i ty - Ability to sustain production - Ability to sustain production

CostCost - Rs/ton - Rs/ton

Trends in Equipment Trends in Equipment Development inDevelopment in

the World Today !the World Today !

The “Age of Knowledge”The “Age of Knowledge”

We live in t imes of unprecedented growth in We live in t imes of unprecedented growth in the expansion of “knowledge”. The total the expansion of “knowledge”. The total “knowledge” in the world doubled from man’s “knowledge” in the world doubled from man’s f irst recorded history to the birth of Christ & f irst recorded history to the birth of Christ & thereafter it took 1,600 years to redouble thereafter it took 1,600 years to redouble and today is estimated to be redoubling and today is estimated to be redoubling every 2 to 4 yearsevery 2 to 4 years““ Knowledge” once applied to specif ic Knowledge” once applied to specif ic problems becomes “technology” problems becomes “technology”

THE “TECHNOLOGY” AGETHE “TECHNOLOGY” AGE

““ Technology” when applied effectively to a segment of Technology” when applied effectively to a segment of the economy, results in higher productivity, higher the economy, results in higher productivity, higher eff iciency, and lower costsefficiency, and lower costs

The sustained growth rate in western economies of 3 to The sustained growth rate in western economies of 3 to 4% over many decades is attributed to productivity gains 4% over many decades is attributed to productivity gains through the introduction of technology, not population through the introduction of technology, not population growth or people working harder.growth or people working harder.

OEM Companies are investing approx 3% of turnover OEM Companies are investing approx 3% of turnover into R&D, and are really technology solution providers, into R&D, and are really technology solution providers, with a focus on improving customer’s productivity.with a focus on improving customer’s productivity.

Further Trends

Trends in Equipment Trends in Equipment DevelopmentDevelopment

The “Human Rights” ageThe “Human Rights” age

Increasing trends to ensure people work Increasing trends to ensure people work in “safe” and “healthy” working in “safe” and “healthy” working environmentenvironment

Increasing Government and Union Increasing Government and Union involvement in your working environmentinvolvement in your working environment

Unwill ingness of people to accept poor Unwill ingness of people to accept poor working condit ionsworking condit ions

Environmental TrendsEnvironmental Trends

The “Environmental” ageThe “Environmental” age

Increasing trends to ensure Increasing trends to ensure mining practices are mining practices are environmentally friendly environmentally friendly Increasing & monitoring and Increasing & monitoring and control by Government and control by Government and NGOs of mining operationsNGOs of mining operationsCommunity and local Community and local organizations sensit ive to issuesorganizations sensit ive to issues

DEFINITION OF DEFINITION OF PERFORMANCE/EFFICIENPERFORMANCE/EFFICIEN

CYCYPerformance – “execution of an action” Performance – “execution of an action” - “fulf i lment of a promise or - “fulf i lment of a promise or request”request”

Efficiency – “the quality or degree of Efficiency – “the quality or degree of being efficient”being efficient” - “as measured by the production - “as measured by the production and cost”and cost”

Productivity – (output value)/(total Productivity – (output value)/(total input costs)input costs)

Mining ProductivityMining Productivity

Productivity = Productivity = OutputOutput InputInput

Equipment = Capital cost + Operating Equipment = Capital cost + Operating costcost

Consumables = Tyres, lubricants, fuel, Consumables = Tyres, lubricants, fuel, buckets etcbuckets etc

How Inputs come about….How Inputs come about….

(Equipment+Labour+Consumables+Infrastru(Equipment+Labour+Consumables+Infrastructure)Rscture)RsEquipment = Capital cost(10%) + Operating Equipment = Capital cost(10%) + Operating spares cost(10%)spares cost(10%)Labour cost = Mining labour(30%) + Labour cost = Mining labour(30%) + Maintenance labour(5%)Maintenance labour(5%)Consumables = Tyres, lubricants, Consumables = Tyres, lubricants, fuel,buckets,etc (30%)fuel,buckets,etc (30%)Infrastructure = Electricity, services, etc Infrastructure = Electricity, services, etc (10%)(10%)Revenue or effective use of equipment ????Revenue or effective use of equipment ????

IMPROVED PRODUCTIVITYIMPROVED PRODUCTIVITYMEASURE MEASURE �� CONTROL CONTROL �� OPTIMIZE OPTIMIZE

Continuos Improvement

Planning

Production Execution

Follow Up

Real-time Information

Sharing

ReportsTarget

Monitoring Info

Machine Missions

Continuous process enables process optimization Accurate real-time information is available

•Get key personnel involved as soon as possible•Buy in at all levels is crucial•All parties must work towards the same GOALS•It must be a WIN-WIN situation or will not work

How to Implement Successfully ?

•The Keyword is TEAMWORK

REPORTING

•Have regular meetings with all levels.•Review achievements against KPIs and also costs•Identify problems and concerns, and draw up action plans•Work on a number of improvement projects as a team

Measurement of Long Term Success

•Appoint a steering committee, of personnel from all the levels •Do monitor of all aspects of operation, review technology options.•Benchmark against other operations•Set long term goals and KPIs based on sustained improvements.•Meet at least once in a week to review•Appreciate each other on the achievements

LOOK FORWARD ON IMPROVEMENT

Dedicate t ime to monitor the Dedicate t ime to monitor the results ,results ,

it ' s the path to salvationit 's the path to salvation Look forward with safety

and lastly but most important

BE STRATEGIC !

Outsourcing-OverviewOutsourcing-Overview

• Outsource- is the arrangement for (work)Outsource- is the arrangement for (work) to be done by external agencies. to be done by external agencies.

OBJECTIVEOBJECTIVE

Opportunity to focus on core business for desired Opportunity to focus on core business for desired credibility with profit.credibility with profit.

Cost effective- Without compromising onCost effective- Without compromising on Quality, Safety & Customer Quality, Safety & Customer

delight. delight.

PhilosophyPhilosophy

Outsourcing is not merely contracting out.Outsourcing is not merely contracting out.

Contracting – aims to earn profit, with no value Contracting – aims to earn profit, with no value addition.addition.Outsourcing – to partner with service providers Outsourcing – to partner with service providers

for specific business process to get better , for specific business process to get better , faster and financial benefit.faster and financial benefit.

A Business Partner…A Business Partner……..…..

Assess capabilityAssess capability

To Reduce To Reduce Operating & capital cost.Operating & capital cost.InventoryInventoryOver headOver head

Improvement in core competency.Improvement in core competency.Help in skills.Help in skills.As a partner on cost saving measure.As a partner on cost saving measure.

Look for the Right AgencyLook for the Right Agency

Words of CautionWords of Caution

Ensure –Ensure –Deal for Deal for

Cost containment & quality standards.Cost containment & quality standards.Production commitment.Production commitment.Non performance penaltyNon performance penalty..

Capability to induce improvementCapability to induce improvement..Contingency plan for fall back.Contingency plan for fall back.Action plan for counter in house resistance.Action plan for counter in house resistance.

Setting Goals and ObjectivesSetting Goals and ObjectivesOwners OH&S Productivity Environment Optimisation of fleet Commercially viable

Party OH&S Reliability Availability Environment Commercially viableSafety

Action PlansPriorities

ResponsibilitiesChange of Scope

Reporting ScheduleDispute Resolution

Management Team

Operating Team

Mine Management Site Management

Creating the EnvironmentCreating the Environment

Continuous Improvement

Consolidate gains

Measure Outcomes

Empowerment

Publish short term wins

Communicate the Vision

Develop vision and strategyAVAILABILITY

RELABILITY

MAINTAINABILITY

TOTAL

COST

of

OWNERSHIP

PRODUCINGPERFORMANC

ECONTRACT

TRAINING CONTRACT

PREVENTIVE MAINTENANCECONTRACT

COST & PRODUCTIVITYCONTRACT

PERFORMANPERFORMANCECE

RELIABILITYRELIABILITY

AVAILABILITYAVAILABILITY

FIXED FIXED PARTSPARTS& SERVICE& SERVICE

FIXED PARTSFIXED PARTSPRICEPRICE

INTERMITTENT PARTIAL INTERMITTENT PARTIAL INTEGRATEDINTEGRATED

EQUIPMENT SUPPLIER INVOLVEMENT

COMPONENT EXCHANGE CONTRACT

SPARE PARTS CONTRACT

COST & AVAILABILITYCONTRACT

COMPETENCY

PROFIT / LOSSSHARING

FIXED FIXED PARTSPARTS& LABOUR& LABOUR

1

2

3

4

5

6

7

8

Performance Contracts on MaintenancePerformance Contracts on Maintenance

Benefits of Outsourcing Benefits of Outsourcing

• Outsourcing is successful in that it Outsourcing is successful in that it increases product quality increases product quality

• Lowers costsLowers costs• Increases productivityIncreases productivity && If implemented and monitored If implemented and monitored

properly – properly – CAN BRING ABOUT A ZERO CAN BRING ABOUT A ZERO

DEFECT CULTUREDEFECT CULTURE