22/06/2009
Source of Efficiency
Industry Today
Source of Efficiency
Jeffrey Owens, president, Advanced Technology Services, Inc., tells of six reasons why outsourcing equipment maintenance is your best hedge in a down economy.
The current economic recession has challenged manufacturers across industries to do more with less while continuing to drive value to customers. Many executives are considering outsourcing certain non-core functions such as equipment maintenance to reliable service providers. With properly structured agreements, companies can maintain or even increase their profitability in difficult times. This strategy allows them to capture market share quickly when the economic situation turns.
There are six key benefits to outsourcing equipment maintenance during a down economy.
1. The Ability to Produce Real Value in the First Year
Typical outsourcing agreements are long-term
engagements. They include a transition period before the
actual service delivery phase kicks in. The transition
phase involves start-up activities, the setup of support
systems and infrastructure as well as establishment of
management functions and ongoing activities. In a typical
outsourcing agreement, the transition phase may last up
to six months.
In the current economic situation, companies do not have
the time to wait months to see benefits. Companies are
looking for immediate positive results. It is critical to
implement a swift transition plan that addresses key
issues, while the support and infrastructure issues are
implemented in the background.
It’s important to quickly and accurately identify the
customer’s objectives and list the activities and processes
that the outsource provider needs to implement in order
to support these objectives. Those tasks should be
complemented by a system that provides metrics to
measure success.
2. Reduction of Uncertainties
In a downturn, companies are often forced to reduce
employees. Internal maintenance groups are reduced,
and in some cases, certain capabilities such as predictive
maintenance teams are eliminated. As a result, people
with specific knowledge of certain tasks are lost. And this
comes at a time when those tasks have become more
critical in meeting customer expectations. While these
corrections are needed to achieve financial goals, they
create a high level of uncertainty about the future.
A proven outsource organization, specializing in
equipment maintenance, can eliminate these
uncertainties. That’s because an outsource organization
has the technical knowledge and capable technicians to
maintain complex, automated equipment. It also has the
capabilities to draw additional resources from various
locations to complement the on-site team as needed. In
addition, an outsource organization will bring systems
such as computerized maintenance management
software (CMMS) that can tap into equipment history at
different locations. This allows the outsource organization
to implement the best maintenance practices that have
been developed and tested and ensures that no key
knowledge walks out the door when a maintenance
technician leaves.
3. A Maintenance Plan That Flexes with Significant
Business Changes
There is never a shortage of challenges in manufacturing.
When times are good, the challenge is to increase
equipment uptime with the least cost possible. In the
current economic situation, the challenge is to decrease
expenses. Even within an economic slowdown,
production demands can change and changes require
adjustments to maintenance staffing levels, shift
coverage and others. An outsource organization can
provide a solution that accommodates significant changes
in the customer’s business, ensuring total alignment for
long-term support. In many cases, the outsource
organization can take on special projects such as
equipment moves, relocations, de-commissioning of
equipment and projects that, in the past, required
bringing in contractors. Combining all these additional
activities while working with one outsource partner leads
to increased efficiency and cost reduction.
4. A Customized Solution Designed to Help the Company
through the Downturn
Total alignment between the customer’s business needs
and the outsource provider’s strategy is key for the
success of the relationship. Since the requirements of
each customer are unique, the outsource provider needs
to develop custom solutions that focus on achieving the
customer’s requirements. By introducing tools like Six
Sigma and Lean process assessments, the outsource
provider can develop solutions to improve the condition of
the equipment without increasing the total cost of
maintenance. Good maintenance planning and scheduling
processes permit accurate forecasting of labor and
materials needed. This allows for immediate recognition
of labor shortages or excesses and provides factual data
needed to evaluate performance or to engage in
corrective actions.
5. Deferred Capital Expenditures Due to Optimized
Existing Asset Performance
The outsource provider evaluates the condition of the
equipment by analyzing the physical aspects of the asset,
maintenance repair and cost data from the CMMS. A plan
is then provided to restore the condition of the
equipment, which will increase reliability and eliminate the
need for spending capital dollars on new equipment.
Typically, the equipment restoration plan includes tasks
that engage the operator in performing basic care and
general condition monitoring. Often, the equipment
restoration plan leads into a total productive
maintenance (TPM) activity involving production
personnel, equipment operators and maintenance.
Combining TPM and reliability centered maintenance
(RCM) increases team work between the maintenance
and production functions. This improves equipment
reliability and lowers total operating cost. Applying RCM
selectively to fine tune TPM creates optimized
maintenance tasks. The process delivers clear
instructions on what is needed to ensure that the
equipment continues to operate reliably.
6. Finding and Eliminating Hidden Waste in the
Maintenance Organization
The fundamental premise of Lean Principle is the
elimination of waste. One of the largest
categories of waste in maintenance is the performance of
unnecessary maintenance. The
maintenance outsource provider addresses this by
determining the optimum maintenance
interval or frequency and the effect on maintenance cost.
These decisions are made based on equipment history,
condition, operating environment, usage etc.
In addition to optimizing maintenance intervals, there are a number of other considerations in the maintenance optimization process. They include the use of:
- Predictive maintenance (PdM) technologies to augment the maintenance tasks
performed on the equipment. Tools such as thermography cameras, oil analysis, and
vibration analyzers provide condition information on components that a visual inspection would not detect.
- Detailed equipment analysis based on RCM analysis creates effective and cost efficient maintenance tasks.
- Root cause analysis (RCA) is used to identify the root cause of problems. RCA is designed to discover not only what or how something happened, but why it happened.
Maintenance planning and scheduling prioritizes and organizes work so it can be executed in the most efficient manner. It’s getting the right people in the right place with the necessary tools, parts and information to perform the required task.
Another important process focusing on the elimination of waste is Six Sigma. Using the Six Sigma system improves maintenance processes, efficiency, services and customer experience. This process creates the culture of continuous improvement.
Overall, the outsource provider can help companies achieve their strategic goals allowing them to focus primarily on their customers. Companies that make the decision to outsource equipment maintenance will have access to world class maintenance services and will be ready when the economy turns around.
For more information visit www.advancedtech.com