2017

UNILEVER MAINTENANCE
HANDBOOK
MAINTENANCE MANAGEMENT
ESSENTIALS

1
CONTRIBUTORS
Approver Gianluca Tancredi
VP SC ManEx, IP and Manufacturing
Sustainability

Editors Maurizio Emo Massimiliano Urbini

Manufacturing Excellence Director Global Manufacturing Excellence
NAMET-RUB Director

Roman Kucheryavy
Manufacturing Excellence Manager
RUB

Authors Maurizio Emo Murat Sener

Manufacturing Excellence Director Engineering Manager
NAMET-RUB Corlu Ice Cream Factory

Roman Kucheryavy Serdar Isler

Manufacturing Excellence Manager Manufacturing Excellence Manager
RUB TUII

ACKNOWLEDGEMENTS
The editors and authors would like to thank the following people for supporting our content
development efforts in putting together this first version of the Maintenance Handbook. We truly
appreciate your contributions of real-life examples and data from your factory operations, which
help to demonstrate our best thinking on maintenance approaches and practices.

Andrey Krivko, Senior Manufacturing Manager, St. Petersburg HPC + Tea Factory

Arkadiusz Dorniak, Area Engineer, Katowice Beverages and Foods Factory

Farooq Anwar, Technical Manager, Lipton Tea Factory Unilever Gulf

Gennady Rodionov, Senior Repair & Maintenance Supervisor, St. Petersburg HPC + Tea Factory

Vladimir Zaritovski, Maintenance Supervisor, Tula Ice Cream Factory

2
REVISION HISTORY
Version Version 1.0

Date January 2017

PURPOSE OF HANDBOOK
The Unilever Maintenance Handbook was created by a global team of Manufacturing Excellence
and Engineering professionals in line with Unilever and industry approaches and best know-how.

The purpose of this handbook is to support all Unilever Engineering and Factory Leadership
teams by providing clear guidelines, tools and practical references on ways to effectively manage
maintenance in our factories. The content was drawn from the most widely used processes and
best practices, and then summarised for use by Maintenance teams in their daily jobs. It is fully
aligned with Unilever Finance and HR4F guidelines.

This handbook should be used by site engineering managers, maintenance supervisors, project
engineers, maintenance planners and other maintenance personnel to effectively structure
maintenance organisations and accelerate the implementation of existing World Class
Manufacturing Professional Maintenance (WCM PM) best practices.

3
PREFACE
The importance of the maintenance function as an integral part of Unilever Production System
cannot be underestimated. The proper execution of maintenance is a prerequisite for driving our
on-time delivery, first-time quality, and cost competitiveness in all of our sourcing units.
The overall objective of maintenance is to maximise equipment reliability at minimum cost.
Maintenance cost, which is defined as spare parts, maintenance labour and third-party services
by normal plant accounting procedures, is typically a significant portion of the total operating
spend in our factories. In Unilever, maintenance costs have increased over the past years. In 2014
global repair and maintenance costs were 357 mio €, which increased to 384 mio € in 2015. Based
on an analysis of select factories from each cluster, inefficiencies from lack of preventive
maintenance, over maintenance, or underutilisation of resources that can be attacked and
removed are estimated at 50 to 70 mio € globally.

The purpose of this handbook is to support all Unilever Engineering and Factory Leadership
teams by providing clear guidelines, tools and practical references, which can accelerate the
implementation of existing maintenance best practices. Many books are available today on
maintenance, so we do not want to add one more to the already huge available bibliography.
Rather we have summarised from these and from the existing best practices in Unilever all
of the information and maintenance business data that will be useful for the daily job of
maintenance teams.

Because of the actual high maintenance costs, focusing on it represents a great potential for
short-term improvement. Delays, product rejects, unscheduled maintenance downtime, and
other traditional maintenance factors — such as labour overtime and over utilisation of repair
parts — are generally the major contributors to abnormal maintenance costs within a plant.

The dominant reason for this ineffective management is the lack of factual data that quantifies
the actual need for repair or maintenance of plant machinery, equipment and systems.
Maintenance scheduling has been, and often still is, executed on statistical trend data or on the
actual failures of plant equipment.

Until recently, we have ignored the impact of maintenance operations on product quality, on
production costs, and more importantly, on bottom-line profits. The general opinion has been
'maintenance is a necessary evil’ or 'nothing can be done to improve maintenance costs '.
Perhaps these were statements true 10 or 20 years ago. However, microprocessors and
computer-based instrumentation can now be used to monitor the operating conditions of
plant machinery, equipment and systems. These technologies provide us with tools and
systems to manage maintenance operations much more effectively. They provide the means
to reduce or eliminate unnecessary repairs, prevent catastrophic machine failures, and reduce
the negative impact of maintenance operations on the profitability of Unilever manufacturing
and production plants.

We hope all interested colleagues find value in this handbook and use it to improve the
maintenance practices that will drive our growth and profitability in the future.

Maurizio Emo

This document is for internal Unilever use only.

4
CONTENTS
1.0 ORGANISATION AND MANAGEMENT OF MAINTENANCE .............. 8
1.1 TYPES OF MAINTENANCE .................................................................... 9
1.2 MISSION OF A MAINTENANCE ORGANISATION ......................................... 14
1.3 EVALUATION OF A MAINTENANCE ORGANISATION .................................... 15

2.0 MAINTENANCE ORGANISATION ....................................................... 17

2.1 TYPES OF MAINTENANCE ORGANISATIONS ............................................. 19
2.2 UNILEVER MAINTENANCE BLUEPRINT ................................................... 23
2.3 MAPPING OF MAINTENANCE ROLES TO UNILEVER ROLES .......................... 25
2.4 MAINTENANCE STAFFING MODELS ........................................................ 25
2.5 MAINTENANCE ROLES AND RESPONSIBILITIES ....................................... 29

3.0 MAINTENANCE PERFORMANCE INDICATORS ................................ 36

3.1 KEY PERFORMANCE AND ACTIVITY INDICATORS ....................................... 39
3.2 INTEGRATION OF MAINTENANCE FROM STRATEGIC TO SHOP FLOOR LEVELS . 40
3.3 MAINTENANCE SCORECARD ................................................................ 41
3.4 HOW MAINTENANCE KPIs ARE USED ..................................................... 65
3.5 KPIs AND KAIs FOR MAINTENANCE PERSONNEL ...................................... 67

4.0 MAINTENANCE CONTROL ................................................................ 70

4.1 MAINTENANCE MANAGEMENT SYSTEM .................................................. 71
4.2 WORK ORDER SYSTEM ........................................................................ 73
4.3 MAINTENANCE CONTROL .................................................................... 79
4.4 ROLES OF MAINTENANCE MANAGER AND PLANNER ................................ 91

5
5.0 PLANNING AND SCHEDULING ......................................................... 93
5.1 EFFECTIVE PLANNING AND SCHEDULING ............................................... 95
5.2 BASICS OF WORK PLANNING ............................................................... 96
5.3 SIX MAINTENANCE PLANNING PRINCIPLES ............................................ 97
5.4 BASICS OF SCHEDULING ..................................................................... 102
5.5 SIX MAINTENANCE SCHEDULING PRINCIPLES ......................................... 103
5.6 FORMS AND OTHER RESOURCES ........................................................... 109

6.0 BUDGETING AND COST MANAGEMENT ........................................... 117

6.1 BUDGETING AND COSTING SYSTEMS ...................................................... 118
6.2 DEVELOPING PLANNED AND BREAKDOWN MAINTENANCE BUDGETS ........... 119
6.3 MAINTENANCE JOB COSTING ............................................................... 128
6.4 GLOBAL PRODUCT COSTING RULES ....................................................... 131

7.0 SPARE PART MANAGEMENT............................................................. 139

7.1 OBJECTIVES OF SPARE PART MANAGEMENT ............................................ 140
7.2 SPARE PART MONITORING SYSTEM ........................................................ 140
7.3 SEVEN STEPS OF SPARE PART MANAGEMENT .......................................... 144
7.4 BEST PRACTICES AND BARRIERS TO IMPLEMENTATION ............................. 159
7.5 ROLE OF SPARE PARTS STOREKEEPER ................................................... 161

8.0 COMPUTERISED MAINTENANCE MANAGEMENT SYSTEM ............ 162

8.1 MANUAL MAINTENANCE SYSTEM .......................................................... 163
8.2 FUNCTIONALITY OF A CMMS ................................................................ 164
8.3 WORK ORDERS IN A CMMS .................................................................. 166
8.4 WHAT A CMMS DOES .......................................................................... 170
8.5 WHO USES A CMMS AND HOW? ............................................................. 174
8.6 SAP APPENDIX .................................................................................. 175

6
9.0 WCM AND PROFESSIONAL MAINTENANCE ................................... 179
9.1 PROFESSIONAL MAINTENANCE IN WCM ................................................ 180
9.2 PRELIMINARY ACTIVITIES .................................................................... 182
9.3 RESULTS FROM APPLYING WCM PM ...................................................... 193

10.0 LUBRICATION .................................................................................... 195

10.1 LUBRICATION PROGRAMME DEVELOPMENT ........................................... 196
10.2 CENTRALISED LUBRICATION SYSTEMS ................................................. 197
10.3 SINGLE-LINE TOTAL LOSS LUBRICATION SYSTEMS .................................. 198
10.4 CIRCULATING LUBRICATION SYSTEMS .................................................. 200

11.0 MANUFACTURING MEASUREMENT TECHNOLOGY ......................... 206

11.1 BASICS OF MANUFACTURING MEASUREMENTS ...................................... 207
11.2 DRAWING SPECIFICATIONS ................................................................ 209
11.3 GEOMETRICAL SPECIFICATIONS .......................................................... 211
11.4 TYPES AND APPLICATIONS OF MEASURING DEVICES ............................... 214
11.5 SURFACE METROLOGY ....................................................................... 218
11.6 FORM AND POSITION MEASURING ....................................................... 219
11.7 LASER MEASURING TECHNOLOGY ........................................................ 221

12.0 ACRONYMS ........................................................................................ 222

13.0 BIBLIOGRAPHY.................................................................................. 225

7
 1 ORGANISATION AND MANAGEMENT OF
1 MAINTENANCE

1.1 TYPES OF MAINTENANCE ................................................................. 9

1.1.1 Reactive: Breakdown Maintenance ........................................................ 10
1.1.2 Preventive: Time Based Maintenance ..................................................... 11
1.1.3 Predictive: Condition Based Maintenance ................................................ 13
1.1.4 Corrective: Corrective Maintenance ....................................................... 14

1.2 MISSION OF A MAINTENANCE ORGANISATION ............................... 14

1.3 EVALUATION OF A MAINTENANCE ORGANISATION ........................ 15

Types of Maintenance

Unplanned Planned
Maintenance Maintenance

Reactive
Preventive Predictive Corrective
(Breakdown)
Maintenance Maintenance Maintenance
Maintenance

Autonomous Time Based Condition Based

8
Maintenance Maintenance Maintenance
(AM) (TBM) (CBM)
Organisation and Management of Maintenance | Types of Maintenance

1 ORGANISATION AND MANAGEMENT OF

1 MAINTENANCE
Introduction
According to Webster's dictionary, management characterises the process of leading and directing
all or part of an organisation through the deployment and manipulation of resources (e.g. human,
financial, material, intellectual or intangible). Maintenance management, therefore, characterises
the process of leading and directing the maintenance organisation.

Maintenance management can be defined as follows:

"All the activities of the management that determine the maintenance objectives or priorities
(defined as targets assigned and accepted by the management and maintenance department),
strategies (defined as a management method in order to achieve maintenance objectives), and
responsibilities and implement them by means such as maintenance planning, maintenance
control and supervision, and several improving methods including economical aspects in the
organization."1

The scope of maintenance extends to all plant equipment / assets, which includes systems,
machinery, components and auxiliary equipment. Managing maintenance effectively and
efficiently requires a clear understanding of the processes (based on types of maintenance)
and the maintenance organisation (based on structure, roles and responsibilities).

1.1 TYPES OF MAINTENANCE

In a typical classification, there are two main types of maintenance: unplanned and planned.

Illustration

Types of Maintenance

Unplanned Planned
Maintenance Maintenance

Reactive
Preventive Predictive Corrective
(Breakdown)
Maintenance Maintenance Maintenance
Maintenance

Autonomous Time Based Condition Based

Maintenance Maintenance Maintenance
(AM) (TBM) (CBM)

1
Mohamed Ben-Daya, Uday Kumar and D. N. Prabhakar Murthy. Introduction to Maintenance Engineering: Modeling,
Optimization, and Management. (Hoboken, NJ: John Wiley & Sons, 2016), 401.

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Organisation and Management of Maintenance | Types of Maintenance

1.1.1 Reactive: Breakdown Maintenance

Reactive maintenance is unplanned maintenance actions taken to repair or replace a piece of
equipment / asset after a breakdown or failure has already occurred. Reactive maintenance could
be considered a specific strategy to reduce maintenance cost, but it has a negative effect on
manufacturing performance. In another situation, it is not a strategy but instead results from an
improper application of time based maintenance (TBM). TBM specifications are initially defined
based on data provided by equipment manufacturers. Typically, manufacturers only provide data
on the most obvious components and consumables. This data is often incomplete and not
intended to define all of the required maintenance.

On the surface, breakdown maintenance sounds quite reasonable. A plant does not spend
any money on maintenance until a piece of equipment / asset fails to operate. In truth, it is a
no-maintenance approach. Unless breakdown maintenance is intentionally organised for specific
low cost components that do not have a significant impact on asset performance, it is the most
expensive method of maintenance management.

Few plants have a true run-to-failure philosophy. In almost all plants, some basic preventive tasks
are performed (e.g. lubrication, machine adjustments, and other adjustments). However, in a
run-to-failure environment, plant equipment / assets are not rebuilt and major repairs are not
made until they fail to operate. The major expenses from run-to-failure are as follows:

• High spare part inventory costs.

• High overtime labour costs.

• High machine downtime.

• Low production availability.

Since there is no attempt to anticipate maintenance requirements, a plant that uses true
run-to-failure management must be able to react to all possible failures. This requires
maintaining extensive spare part inventories including spare machines or at least major
components for all critical equipment / assets. The alternative is to rely on suppliers who can
provide immediate delivery of repair parts. Even if the latter is possible, premiums for expedited
delivery of parts and production downtime while correcting failures substantially increase costs.
Maintenance personnel must also be able to react immediately.

The net results are higher maintenance costs and lower availability of process machinery.
Analysis of maintenance costs indicates that a repair performed in a reactive or run-to-failure
mode will average about three times higher than the same repair made in a preventive mode.
Scheduling a repair provides the ability to minimise repair time and associated labour costs.
It also provides a way to reduce the negative effects of expedited shipments and lost
production time.

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Organisation and Management of Maintenance | Types of Maintenance

1.1.2 Preventive: Time Based Maintenance

Preventive maintenance is maintenance actions that are performed proactively on a time-based
or cycle-based schedule in order to detect, preclude or mitigate degradation of a piece of
equipment / asset. The objective is to sustain or extend the useful life by controlling degradation
to an acceptable level.

Preventive maintenance tasks are scheduled for execution based on elapsed time or hours of
operation. An example is “change belts of case packing machine each two months or 1,000
operating hours”. The frequency of preventive maintenance tasks and equipment / asset
rebuilds are planned based on a mean time to failure (MTTF) statistic.

Illustration
Every piece of equipment / asset has a statistical life based on a MTTF, or bathtub curve.
During the first few weeks of operation, there is a higher probability of failure due to installation
problems. After that initial period, the probability of failure is relatively low for an extended time
period during the normal operating life. Near the end of statistical life, the probability of failure
increases sharply.

MTTF Bathtub Curve

Break in
or Equipment
Normal life
start-up worn out

Time

11
Organisation and Management of Maintenance | Types of Maintenance

[Link] Strategies for Implementing Preventive Maintenance

The actual implementation of preventive maintenance varies greatly. Some preventive
maintenance programmes are extremely limited and only consist of lubrication and minor
adjustments. More comprehensive programmes schedule repairs, lubrication, adjustments
and machine rebuilds for all critical equipment / assets. The common denominator for all of
these is the scheduling guideline. All programmes assume equipment / assets will degrade
within a time frame that is typical for its particular classification. For example, a single-stage,
horizontal split-case centrifugal pump will normally run 18 months before it must be rebuilt.
Using preventive management techniques, the pump will be removed from service and rebuilt
after 17 months of operation.

The problem with this approach is the mode of operation and the system or plant-specific
variables directly affect normal operating life. The mean time between failures (MTBF) will not
be the same for a pump that handles water and one that handles abrasive slurries. The normal
result of using MTBF statistics is either unnecessary repairs or catastrophic failures. In the
example, the centrifugal pump may not need to be rebuilt after 17 months. The labour and
material used to make the repair would be wasted. The second option, use of preventive
maintenance, is even more costly. If the pump fails before 17 months, the repair would be made
using run-to-failure techniques. Analysis of maintenance costs has shown that a repair made in
a reactive mode (i.e. after breakdown) will normally be three times greater than the same repair
made on a scheduled basis. In fact, catastrophic events have longer breakdown times with
consequently more material and more labour.

A comprehensive preventive maintenance programme cannot be implemented without having

breakdowns. In general, a programme will have an initial transition period where it is partially
reactive and partially preventive. By performing root cause analysis (RCA) of breakdowns,
relationships between equipment / assets and their components can be determined. Maintenance
standards can then be revised in terms of new repair frequencies, and the time to repair can be
optimised as well. The end result will be a preventive maintenance programme that will prolong
the life of equipment / assets.

[Link] Autonomous Maintenance

Autonomous maintenance is a type of preventive maintenance. However, it is performed by
machine operators rather than dedicated maintenance technicians. Machine operators perform
inspection and monitoring tasks in addition to the simpler (and safe) maintenance tasks such as
lubrication, bolt tightening and cleaning.

Autonomous maintenance gives more maintenance responsibility to machine operators, which

allows technical personnel to do more preventive and improvement tasks. Since operators have
the daily hands-on contact, they are more familiar with how the machine operates. With full
training, they can also understand how the machine functions. Operators can have greater
ownership of their work and be more in control of how things are done and what improvements
are made.

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Organisation and Management of Maintenance | Types of Maintenance

1.1.3 Predictive: Condition Based Maintenance

Predictive maintenance is the application of modern analytical techniques to proactively monitor
and predict imminent failures of equipment / assets. Instead of relying on average-life statistics
like MTTF, predictive maintenance uses direct monitoring of the mechanical condition of
machine-trains that indicate the component’s mechanical condition. Predictive maintenance
tasks are scheduled for execution using changes in the actual operating condition of equipment /
assets and systems.

The goals of a predictive maintenance programme are to maximise the intervals between repairs,
minimise the number and cost of unscheduled outages created by machine-train failures, and
extend the life of equipment / assets. It is a way to improve the productivity, product quality, and
profitability of Unilever factories.

At best, traditional time-driven methods provide a guideline to normal machine-train life spans.
The addition of a comprehensive predictive maintenance programme can and will provide factual
data on the actual mechanical condition of each machine-train and operating efficiency of each
process system. Maintenance managers use this factual data to schedule maintenance activities
on an as-needed basis.

In practical terms, condition based maintenance controls the wear of a component by controlling
proper parameters that are directly connected to that component‘s life cycle.

[Link] Strategies for Implementing Predictive Maintenance

A comprehensive predictive maintenance programme uses a combination of the most cost
effective techniques in order to obtain data on actual operating conditions. There are five
non-destructive techniques commonly in use:

1. Vibration monitoring.

2. Process parameter monitoring.

3. Thermography.

4. Tribology.

5. Visual inspection.

Each technique has a unique data set for determining the actual need for maintenance.

Most programmes use vibration analysis as the primary tool. Since a majority of plant
equipment is mechanical, vibration monitoring is the best technique for routine monitoring and
identification of incipient problems. However, vibration analysis cannot provide the data required
for non-mechanical equipment such as electrical equipment, areas of heat loss, and condition of
lubricating oil. Other techniques must be used in these areas.

Successful implementation of a predictive maintenance programme requires very

knowledgeable project engineers and maintenance technicians. After they master all phenomena
of wear, breakage and fatigue, they can use diagnostic systems to monitor operating conditions.
By applying their knowledge of machines, components, technologies, materials and diagnostic

13
Organisation and Management of Maintenance | Mission of a Maintenance Organisation

instruments, the life of equipment / assets can be extended and reductions in maintenance costs
can be achieved.

1.1.4 Corrective: Corrective Maintenance

The primary difference between corrective and preventive maintenance is there must already be
an existing problem before corrective maintenance actions are taken. Corrective maintenance,
unlike breakdown maintenance, is focused on regularly planned tasks that will maintain all
critical plant equipment / assets in optimum operating condition. A simple example of corrective
maintenance is a machine operator observed a vacuum pump was intermittently running at a
lower RPM. The operator opened (i.e. raised) an operator tag to the maintenance team, a work
order was created, and a maintenance technician inspected and repaired the pump.

The principal concept of a corrective maintenance programme is that properly completed

repairs of all incipient problems are made as-needed. Incipient problems are not just electrical
or mechanical. Instead, all deviations from optimum operating condition are repaired when
initially detected. The repairs should be well planned, performed by properly trained technicians,
and verified before the piece of equipment / asset is returned to service.

Corrective maintenance, as a subset of a comprehensive planned maintenance programme, is a

proactive approach. The fundamental objectives are to:

• Avoid repairs that are unnecessary.

• Eliminate breakdowns of all critical equipment / assets.

• Eliminate deviations from optimum operating conditions.

• Optimise the effectiveness of all critical equipment / assets.

The effectiveness of a corrective maintenance programme is evaluated based on the life-cycle

costs of critical equipment / assets — not on how quickly they are put back into service.

1.2 MISSION OF A MAINTENANCE ORGANISATION

Too many maintenance organisations focus on how fast they can react to catastrophic failures or
production interruptions rather than on their ability to prevent them. Contrary to popular belief,
the role of the maintenance organisation is to maintain plant equipment / assets, not to repair
them after failures.

14
Organisation and Management of Maintenance | Evaluation of a Maintenance Organisation

Illustration
The mission of a world class maintenance organisation can be divided into six categories.

Category Description

Optimum Availability The production capacity of a plant is, in part, determined by the availability of
production systems and their auxiliary equipment. Maintenance should help
achieve and sustain optimum availability of production systems by ensuring
all equipment / assets are always on line and in good operating condition.

Optimum Operating Optimum availability of critical production systems is not enough to ensure
Condition acceptable plant performance levels. Maintenance must also maintain all
direct and indirect manufacturing equipment / assets, so they are continuously
in optimum operating condition. Even minor problems can reduce production
speeds, negatively affect product quality, or affect other factors that limit
overall plant performance.

Maximum Utilisation Typically, maintenance controls a substantial part of a plant’s total operating
of Maintenance budget. In addition to an appreciable percentage of the total plant labour
Resources budget, maintenance managers may also control the spare part inventory and
authorise the use of outside contract labour. A key goal of the maintenance
organisation should be the effective use of these resources.

Optimum One way to reduce maintenance cost is to extend the useful life of plant
Equipment Life equipment / assets. Maintenance management should develop and implement
programmes that will increase the useful life of all plant equipment / assets.

Minimum Spare Part Reducing spare part inventory is a major objective for maintenance. However,
Inventory the reduction cannot impair the ability to meet all other goals. With the
predictive maintenance technologies available today, maintenance can
anticipate the need for specific equipment or parts far enough in advance to
purchase them on an as-needed basis.

Ability to React Not all catastrophic failures can be avoided. Maintenance must maintain the
Quickly ability to react quickly to unavoidable failures.

1.3 EVALUATION OF A MAINTENANCE

1.3 ORGANISATION
One way to quantify the maintenance philosophy in a plant is to analyse the maintenance tasks
that were done over the past three years. The analysis should identify and quantify the specific
performance indicators that reflect management’s philosophy towards maintenance.

• Number of production interruptions caused by maintenance-related problems is one of

the best performance indicators. If production delays represent more than 30% of total
production hours, reactive (breakdown) response is the dominant management philosophy.
To be competitive in today’s market, delays caused by maintenance-related problems should
be less than 1% of total production hours.

15
Organisation and Management of Maintenance | Evaluation of a Maintenance Organisation

• Percentage of maintenance overtime required to maintain the plant is another indicator.

If overtime represents more than 10% of the total labour budget, reactive response is the
dominant management philosophy. Some level of overtime will always be required due to
special projects and the 1% of delays caused by machine failures. However, these abnormal
costs should be a small percentage of total labour costs.

• Manpower utilisation is also an indicator. Evaluate the percentage of available maintenance

labour hours that are expended on actual repairs and preventive maintenance tasks. If
manpower utilisation is less than 50%, reactive response is the dominant management
philosophy. A well-managed maintenance organisation should consistently maintain
manpower utilisation above 90%. In other words, at least 90% of the available maintenance
labour hours should be effectively used to improve the reliability of critical plant equipment /
assets. Time should not be spent waiting for something to break.

16
 2 MAINTENANCE ORGANISATION

2.1 TYPES OF MAINTENANCE ORGANISATIONS .................................... 19

2.1.1 Decentralised and Centralised ............................................................. 19
2.1.2 Trade Organisation ............................................................................ 20
2.1.3 Area Organisation ............................................................................. 21
2.1.4 Hybrid Organisation ........................................................................... 22

2.2 UNILEVER MAINTENANCE BLUEPRINT ........................................... 23

2.3 MAPPING OF MAINTENANCE ROLES TO UNILEVER ROLES ........... 25

2.4 MAINTENANCE STAFFING MODELS ................................................. 25

2.4.1 Qualitative Method............................................................................. 26
2.4.2 Financial Method .............................................................................. 26
2.4.3 Empirical Method .............................................................................. 27
2.4.4 Staffing Supervisory Roles ................................................................... 29

2.5 MAINTENANCE ROLES AND RESPONSIBILITIES ............................ 29

2.5.1 Site Engineering Manager - Maintenance Manager .................................... 29
2.5.2 Engineering Supervisor - Maintenance Supervisor .................................... 30
2.5.3 Engineering Supervisor - Project Engineer .............................................. 31
2.5.4 Engineering Specialist - Maintenance Planner ......................................... 33
2.5.5 Engineering Ancillary - Spare Parts Storekeeper ...................................... 34
2.5.6 Multi/Single Skill Technician - Maintenance Technician .............................. 34

Site Engineering
Manager

Area 1 Area 2 Central

Maintenance
Maintenance Maintenance Maintenance
Planner
Supervisor Supervisor Supervisor
17
Maintenance Maintenance Spare Parts Maintenance
Technicians Technicians Storekeeper Technicians
Maintenance Organisation | Types of Maintenance Organisations

2 MAINTENANCE ORGANISATION
Introduction
An analysis of a significant number of Unilever sites across all clusters revealed that our
factories had adopted many different organisational structures. These different structures are
not generating the unified optimum performance that is required to achieve our corporate vision.
The goal is to standardise the way we structure and manage maintenance in our factories, so we
can achieve an efficient and effective organisation.

To enable World Class Manufacturing (WCM), our factories need a well-functioning organisation.
The first step was HR for Factories (HR4F), which was the foundation programme for human
resources in our factories. HR4F was developed to guide factories in establishing a standard
factory organisation with a focus on the first lines of management and supervision. Through
work done by the WCM People Development Pillar, Unilever is now moving to the second step
to build HR Unilever Production System (HRUPS).

Illustration

Standard Factory Organisational Structure from HR4F Foundation Programme

Factory Typical "Med-Large" Template

Director / Factory Organisation with Semi-
Manager autonomous Teams being formed

Site Supply Technology

Site Site Quality Site Man. Ex Site SHE HR
Manufacturing Planning & Innovation
Engineering Manager / Manager / Manager / Manager /
Manager(s) Manager / Manager /
Manager Leader Leader Leader Leader
Leader Leader

Technology
Process Utilities Quality Coordinator / Production Skills
& Innovation
Engineer Engineer Specialist Facilitator Scheduler Trainers
Engineer

First Line
Manager

Technicians /
Technical Quality
Multi Skilled
Operator Operator
Craft

Basic
Operator

18
Maintenance Organisation | Types of Maintenance Organisations

2.1 TYPES OF MAINTENANCE ORGANISATIONS

Maintenance organisations are shaped according to the role of maintenance in the business in
which a factory operates, in addition to other criteria such as factory size, complexity, layout,
industry and maintenance strategy.

Decentralised and centralised are two types of organisational management structures.

For Unilever, maintenance organisations can be divided into three main types in line with WCM:

• Trade organisation that centralises the maintenance function.

• Area organisation that decentralises the maintenance function.

• Hybrid organisation that has elements of both centralised and decentralised.

2.1.1 Decentralised and Centralised

WCM methodology defines two types of maintenance organisations: decentralised maintenance
and centralised maintenance. Both types have merits and demerits across a variety of factors.
Considering these inputs, which are summarised in the following two illustrations, and the
general sizes of our factories, Unilever requires a centralised maintenance organisation. This
relates to configuration 4, which we will discuss further.

Illustration
Configurations for Decentralised and Centralised Maintenance Organisations

Decentralised Centralised Maintenance

Maintenance
Configuration 1 Configuration 2 Configuration 3 Configuration 4
Maintenance by Line Maintenance by Maintenance by Maintenance by
People Maintenance Department Maintenance Department Maintenance Department
Facility design and Separate activity between Configuration 3 plus
maintenance are taken facility design and assignment of
care of by the same maintenance. maintenance to operators.
maintenance personnel.

Example: Example: Example: Example:

Manufacturing Dept. Manufacturing Dept. Manufacturing Dept. Manufacturing Dept.
Manufacturing Sec. Manufacturing Sec. Manufacturing Sec. Manufacturing Sec.
Maintenance Sec. Engineering Dept. Engineering Dept. Operation
Maintenance
Engineering Dept. Engineering Sec. Facility Design Sec.
in charge of facility Engineering Dept.
(Facility Design) Maintenance Sec.
design and Facility Design Sec.
maintenance
Maintenance Sec.

19
Maintenance Organisation | Types of Maintenance Organisations

Illustration
Merits and Demerits of Maintenance Organisations by Configuration

Decentralised and Centralised Maintenance Organisations Configuration

Merits: 1 2 3 4

Prompt countermeasures against facility troubles.

Promotion of planned maintenance activities.

Easier recognition of the weak points of facilities.

Close link with the shop floor.

Feedbacking of maintenance information into design projects.

Demerits: 1 2 3 4

Work imbalance between Design and Maintenance Departments.

Problems of facilities are not clearly recognised.

Difficulty in carrying out well-planned maintenance activities on the

floor closely linked with lines.

Difficulty in carrying out maintenance prevention together with the

Design Department.

Difficulty in improving specialised maintenance techniques from the

long-term point of view.

2.1.2 Trade Organisation

In a trade organisational structure, maintenance jobs are typically first broken down into the
following elements:

Automation Control Electrical

30
20 40

10

0 60
50

Instrumentation Mechanical

Tasks within each job role should be assigned a trade based on the activities that trade is
responsible for. These activities should be managed by the individual responsible for that trade(s)
across the factory.

20
Maintenance Organisation | Types of Maintenance Organisations

Where the maintenance function is organsied under trades (e.g. automation, control, electrical,
etc.), the centralised maintenance scheduling and planning group assigns tasks across the
entire factory.

Illustration

Trade (Centralised) Organisational Structure

Site Engineering
Manager

Mechanical Electrical Instrumentation &

Others
Supervisor Supervisor Control Supervisor

Maintenance Maintenance Maintenance

Etc.
Technicians Technicians Technicians

2.1.3 Area Organisation

The area organisation concept takes its name from the practice of designating relatively
small areas in which the activities of maintenance personnel are directed and controlled by
the area supervisor.

The area organisational structure decentralises the maintenance function. Maintenance crews
are dedicated to specific areas within the plant, building or group of plants or buildings. Area
supervisors are responsible for maintaining uninterrupted production in their own area. The
personnel and trade groups have all of the required skills to perform the normal workload
within their area. If an area requires additional technicians, the area supervisor requests them
from other areas.

21
Maintenance Organisation | Types of Maintenance Organisations

Illustration

Area (Decentralised) Organisational Structure

Site Engineering
Manager

Area 1 Area 2 Area 3

Supervisor Supervisor Supervisor

Maintenance Maintenance Maintenance

Technicians Technicians Technicians

2.1.4 Hybrid Organisation

In a hybrid organisational structure, some maintenance technicians are assigned to decentralised
shops or areas of the plant and report to an area supervisor. These technicians take care of
adjustments and minor repairs to equipment on a daily basis, so production can continue
without interruption, in addition to some construction work.

Other maintenance technicians are assigned to centralised maintenance shops or functions and
report to a central maintenance shop supervisor. The central shop is expanded by subdividing
it into a series of specialised trades, which increases the total number of technicians. The
supervisor is responsible for shop work, crew administration and field consultation, as required
to meet production demands.

The central maintenance technicians work out in the field on more complex shop activities such
as overhauls, big modifications, modernisation, machine shop work on lathes and grinders, and
valve repair. Electrical and instrument work are examples of centralised functional activities.

22
Maintenance Organisation | Unilever Maintenance Blueprint

Illustration

Hybrid (Centralised/Decentralised) Organisational Structure

Site Engineering
Manager

Central
Area 1 Area 2
Maintenance
Supervisor Supervisor
Supervisor

Maintenance Maintenance Maintenance

Technicians Technicians Technicians

2.2 UNILEVER MAINTENANCE BLUEPRINT

After a detailed evaluation of different types of maintenance organisations, the Unilever
Maintenance Blueprint recommends:

• Trade (centralised) organisational structure for mono-category and small-to-medium-sized

sites.

• Hybrid (centralised/decentralised) organisational structure for multi-category and large sites.

Multi-category and large sites require a more specialised team according to each category, so a
hybrid organisation is proposed. As previously explained, the area group maintains equipment on
a daily basis and the central group works on more complex maintenance activities.

23
Maintenance Organisation | Unilever Maintenance Blueprint

Illustration

Unilever Maintenance Blueprint for Mono-Category and Small-to-Medium-Sized Sites

Site Engineering
Manager

Mechanical Electrical & C&A Utilities &

Maintenance Project
Maintenance Maintenance Site Services
Planner Engineer
Supervisor Supervisor Supervisor

Maintenance Maintenance Maintenance Spare Parts

Technicians Technicians Technicians Storekeeper

NPI
Blue collar roles Procurement
In-house resources Clerk
Can be centralised
Can be outsourced

Unilever Maintenance Blueprint for Multi-Category and Large Sites

Site Engineering
Manager

Area 1 Area 2 Utilities & Central Industrial

Maintenance Project
Maintenance Maintenance Site Services Maintenance Safety
Planner Engineer
Supervisor Supervisor Supervisor Supervisor Engineer

Maintenance Maintenance Maintenance Maintenance Spare Parts

Technicians Technicians Technicians Technicians Storekeeper

NPI
Blue collar roles Procurement
In-house resources Clerk

Can be centralised
Can be outsourced

24
Maintenance Organisation | Maintenance Staffing Models

2.3 MAPPING OF MAINTENANCE ROLES TO

UNILEVER ROLES
Maintenance roles that are considered standard across the factories were first mapped to
Unilever standard roles. The mapping shows the overall alignment of Maintenance roles
within the organisation.

Illustration

Mapping of Maintenance Roles to Unilever Standard Roles for Overall Alignment

within the Organisation

Maintenance Maintenance Maintenance Project Maintenance Spare Parts Maintenance

Roles Manager Supervisor Engineer Planner Storekeeper Technician

Unilever Site
Engineering Maintenance Engineering Multi-Skill
Standard Engineering
Supervisor Specialist Ancillary* Technician
Roles Manager

Single Skill
Technician

* Spare parts storekeeper is considered a white collar role due to the nature of the job. However, it can be configured
as a blue collar depending on local HR polices.

Note In addition to the standard roles, some Unilever factories have industrial safety
engineer and NPI procurement clerk roles. These roles are not included in the
mapping above because they are not considered to be standard Maintenance roles.

2.4 MAINTENANCE STAFFING MODELS

When determining the staffing levels for a Maintenance Department, the starting point should be
the number of technicians. The number of supervisory roles required can be determined based
on well-accepted supervision ratios found in the literature.

For technician staffing, there are three different methods to consider.

25
Maintenance Organisation | Maintenance Staffing Models

2.4.1 Qualitative Method

In the qualitative method, all activities of a maintenance team are considered, quantified and
converted to total labour man-hours for the year. The total man-hours are then converted to
full-time equivalents (FTEs) based on 1,800 hours per technician.

First, planned maintenance activities and their man-hours are calculated to determine the
manning level. Then shift maintenance for breakdown maintenance is added.

Example
Quantitative Method for Calculating Technician Staffing Level

Frequency of Activity Labour Hours Repetitions Labour Hours

per Activity per Year per Year

Daily 10 365 3,650

Weekly 40 52 2,080

Monthly 100 12 1,200

Quarterly 300 4 1,200

Semi-Annual 4,000 2 8,000

Annual 7,000 1 7,000

0,5 to 0,1
Less than annual 10,000 3,000
(say 0,3 for example)

Total per Year 26,130

Required # of Technicians @ 1,800 hours per year 15

A planned maintenance system is established with a maintenance planner role. It is very difficult
to gather all of the information needed to calculate the corresponding FTE number. However, it
gives a very accurate estimate of staffing needs because of its very detailed approach.

2.4.2 Financial Method

The financial method is based on the ratio of maintenance cost to equipment replacement value
(ERV). Based on generally accepted practices and maintenance cost studies done in Unilever, this
ratio should be less than 3%.

26
Maintenance Organisation | Maintenance Staffing Models

Considering the benchmark ratio, required maintenance cost can be calculated by multiplying
ERV by 3%. Then respective maintenance labour cost is estimated using the maintenance labour
cost ratio within total maintenance cost. Then the resulting maintenance labour cost is divided by
labour cost per FTE to calculate the required FTE figure.

(ERV X 3% X Maintenance Labour [Blue Collar only] Ratio)

Formula # of Technicians =
Average Maintenance Labour Cost per Year per FTE

• ERV, if not available, can be estimated using gross book value (GBV) adjusted for inflation.

• For the Euro, the 10-year inflation average is around 1.5% per year.

• For the ERV multiplier:

4% can be used for capital-intensive sites. They are generally fully automated sites,
and more equipment increases maintenance costs.
2% can be used for labour intensive sites where automation is very low.

Example

Assume a site has:

• €80 million Plant and equipment GBV

• 10 years Average age of the equipment

• 1.5% 10-year average inflation rate per year

• 50% Maintenance labour cost ratio

• €40 thousand Annual cost of maintenance labour per year

The calculations are:

€80,000,000 X (1.015^10) = €92,843,266 Equipment Replacement Value (ERV)

(€92,843,266 X 3% X 50%)
= 35 Technicians
€40,000

2.4.3 Empirical Method

The empirical method is used to estimate the number of technicians based on experience using
the number of production lines and shift pattern of the plant. In order to differentiate complexity
in various category technologies, a product category factor is used in the formula.

27
Maintenance Organisation | Maintenance Staffing Models

The formula considers shift maintenance for breakdowns and planned maintenance:

• Shift maintenance staffing is calculated with number of shifts and two technicians per
shift — one mechanical and one electrical technician.

• Planned maintenance staffing is estimated by multiplying number of lines by a product

category factor.

Formula

Production Maintenance Blue Collars Staffing Model

N = S*2+L*C

Where:

N = Number of Blue Collars in production maintenance team

S = Number of shifts as per shift pattern of the plant

L = Number of production lines

C = Product category factor*:

Tea - 0,6-1
IC - 0,5-1
HPC - 0,2-0,6
Foods - 0,2-0,6

* Choice of product category factor range depends on factory performance.

Example

Assume a factory that produces ice cream has:

• 8 Production lines

• 4 Shifts in total as per shift pattern

• 1 Product category factor

The calculation is:

4 X 2 + 8 X 1 = 16 Production Maintenance Blue Collars

28
Maintenance Organisation | Maintenance Roles and Responsibilities

2.4.4 Staffing Supervisory Roles

Once the number of technicians is calculated, the number of supervisors is determined using
well-accepted supervision ratios.

Illustration
Standards for Ratio to Technicians Data by Position

Position Ratio to Technicians

Supervisor 1:10

Planner 1:20

Maintenance Clerk 1:40

Reliability Engineer 1:60

Industrial Safety Engineer 1:60

Training Coordinator 1:80

If a respective headcount corresponds to less than one FTE, then the responsibilities of that role
should be properly distributed to other existing roles to avoid overstaffing.

2.5 MAINTENANCE ROLES AND RESPONSIBILITIES

The job descriptions that follow are organised according to Unilever standard roles. Both the
Unilever standard role name and the Maintenance role name are indicated in the topic title.

2.5.1 Site Engineering Manager - Maintenance Manager

Maintenance managers have accountability for all of the maintenance activities within the factory.
They coordinate closely with other departments to ensure that objectives for asset optimisation
are met. In managing the logistics and personnel activities, they ensure the Maintenance
Department is staffed correctly with the right up-to-date skills.

29
Maintenance Organisation | Maintenance Roles and Responsibilities

Illustration
Unilever WL 2 Job Description for Site Engineering Manager - Maintenance Manager

Job Title:

Site Engineering Manager - Maintenance Manager

Department:

Engineering

Profession (Marketing, Finance, etc.):

Supply Chain

Work Level:

WL 2

Main Job Purpose:

(A concise statement setting out the main purpose and objectives of the job.)

To manage the technical teams responsible to deliver Projects, Innovation, Infrastructure and Services to the site.

Key Accountabilities:
(Please describe the responsibilities and end results that would be expected.)

• Manage the technical teams and associated budgets responsible to deliver Projects, Innovation, Infrastructure
and Services to the site.

• Develop, deploy and implement plans to ensure the best utilisation of assets in the sites as well as supervise
and give guidance on the maintenance of such assets.

• Lead the Innovation implementation on the site, looking for best alternatives / options of design to
manufacturing, following USCC / category technology selections.

• Prepare and manage capital budgets.

• Support innovation delivery as part of regional network.

• Create and implement plans to continuously improve site infrastructure needs such as energy, water,
treatment, steam and all infrastructure services, contracts and contractors.

• Coach and develop the human resources across the site on technical and technology issues.

• Manage the projects, overhauling and innovation budgets.

• Work collaboratively with Operations managers and others to improve site and line efficiencies and
reduce waste.

• Develop, build and make available in the organisation the Product, Process and Packaging Expertises relevant
to the asset base.

2.5.2 Engineering Supervisor - Maintenance Supervisor

A primary role of maintenance supervisors is to direct and guide maintenance technicians,
so the technicians can perform their work assignments efficiently and in a safe manner. This
includes ensuring technicians have the required training and skills to perform work that meets
all appropriate standards. Maintenance supervisors are also responsible for ensuring that the
uptime of equipment and assets is adequate to meet production plans. They contribute to
improvement initiatives by continuously improving maintenance procedures and technology.

30
Maintenance Organisation | Maintenance Roles and Responsibilities

Illustration
Unilever WL 1 Job Description for Engineering Supervisor - Maintenance Supervisor

Job Title:

Engineering Supervisor - Maintenance Supervisor

Department:

Engineering

Profession (Marketing, Finance, etc.):

Supply Chain

Work Level:

WL 1

Main Job Purpose:

(A concise statement setting out the main purpose and objectives of the job.)

Through continuous improvement of maintenance procedures and technology, ensure effective performance by
technicians through appropriate training to deliver equipment to meet required production plans and all Unilever
standards for safety, health and environment.

Key Accountabilities:
(Please describe the responsibilities and end results that would be expected.)

• Use experience and expertise to coach and guide assigned work of Maintenance Technicians within expected
timelines to the quality required by spending a significant part of day on the shop floor (6/2 rule) – 75% of time
on the floor and only 25% in meetings or administrative tasks.

• Assess skills gaps and seek to close these through timely and appropriate training interventions.

• Provide appropriate equipment and training to ensure safe working practices are upheld and environmental
standards are adhered to.

• Liaise with Maintenance Planner to ensure effective and efficient use of resources and accuracy of plan.

• Ensure equipment is available to meet production plans by applying the WCM PM Methodology.
• Validate standards applied by operators performing autonomous maintenance tasks and review with First Line
Managers in production as necessary.
• Review entries in the CMMS for accuracy and timeliness and take action where required.
• Assess opportunities for continuous improvement in both preventive and predictive maintenance and build in to
ongoing plans.

2.5.3 Engineering Supervisor - Project Engineer

Project engineers are primarily responsible for monitoring and managing assets. They ensure
assets are properly designed, purchased and installed and then continue to perform close to
design parameters during their life cycle. The engineers provide ongoing technical guidance for
maintenance programmes and monitor maintenance performance indicators for management.
They play a key technical role in maximising asset utilisation for the factory.

31
Maintenance Organisation | Maintenance Roles and Responsibilities

Illustration
Unilever WL 1 Job Description for Engineering Supervisor - Project Engineer

Job Title:

Engineering Supervisor - Project Engineer

Department:

Engineering

Profession (Marketing, Finance, etc.):

Supply Chain

Work Level:

WL 1

Main Job Purpose:

(A concise statement setting out the main purpose and objectives of the job.)

Ensure the design, purchase and installation of assets with appropriate monitoring and management throughout
their life cycle. Leveraging maintenance performance indicators, shape maintenance programmes by providing
technical input to maximise asset utilisation.

Key Accountabilities:
(Please describe the responsibilities and end results that would be expected.)

• Ensure equipment is designed, selected and purchased based on life-cycle considerations and “total cost
of ownership”.

• Monitor and manage the effective and efficient performance of equipment.

• Establish, track and review KPIs for equipment performance with the Maintenance Supervisor.

• Utilise information available through the Capacity Tool exercise to assess equipment utilisation.

• Implement condition based monitoring to help eliminate unplanned maintenance downtime.

• Review maintenance schedules to assess equipment conditions, requirements of tools and technologies and
amend preventive and predictive maintenance plans with the planner as needed.

• Identify solutions for equipment that does not perform as expected within current PM schedule.

• Act as local expert on CMMS and ensure accurate and effective data capture.

• Monitor spare part management and dispose of obsolete items.

• Liaise with Category Technology to ensure core designs are adopted.

• Maintain up-to-date knowledge of technology developments and the required skills.

• Manage 3rd party contractors and ensure Unilever standards are met.

• Support Finance by establishing cost / benefit reviews of maintenance activities including assignment of tasks
and applying ECRS (Eliminate, Combine, Reduce and Simplify) to activities.

• Ensure equipment runs as designed and meets standards for nominal speed, etc. to maximise
equipment capacity.

32
Maintenance Organisation | Maintenance Roles and Responsibilities

2.5.4 Engineering Specialist - Maintenance Planner

The maintenance planner has different responsibilities than the maintenance supervisor.
While the supervisor manages the maintenance technicians, the planner provides support to
them. A primary role of maintenance planners is to plan and coordinate maintenance activities
and develop weekly prioritised schedules by working closely with maintenance supervisors.

In many organisations, a common mistake is having maintenance supervisors both plan

and supervise. However, when supervisors have a full load (typically around 10 technicians),
they are not able to properly fulfil both roles. This results in inefficient and ineffective
maintenance operations.

Illustration
Unilever WL 1 Job Description for Engineering Specialist - Maintenance Planner

Job Title:

Engineering Specialist - Maintenance Planner

Department:

Engineering

Profession (Marketing, Finance, etc.):

Supply Chain

Work Level:

WL 1

Main Job Purpose:

(A concise statement setting out the main purpose and objectives of the job.)

Supports the Maintenance Technicians by planning and coordinating maintenance activities and providing a weekly
schedule that considers resource availability of technicians and equipment.

Key Accountabilities:
(Please describe the responsibilities and end results that would be expected.)

• Plan, schedule and coordinate preventive and corrective maintenance activities to maximise use of
Maintenance Technicians and minimise downtime.

• Liaise with Maintenance Supervisor to set priorities and amend weekly maintenance schedule as necessary.

• Maintain accurate Master Data and ensure timely and complete information is recorded in the CMMS.

• Support Spare Parts Storekeeper where job responsibilities permit (e.g. by managing inventory).

• Review and update the maintenance management programme related to amendments of the preventive or
predictive maintenance schedule (e.g. repetitive problems).

• Refer issues not related to preventive or predictive maintenance to the Project Engineer for resolution.

33
Maintenance Organisation | Maintenance Roles and Responsibilities

2.5.5 Engineering Ancillary - Spare Parts Storekeeper

The primary role of the spare parts storekeeper is to manage the stock of spare parts with high
accuracy and in line with all appropriate standards.

Illustration
Unilever WL 1 Job Description for Engineering Ancillary - Spare Parts Storekeeper

Job Title:

Engineering Ancillary - Spare Parts Storekeeper

Department:

Engineering

Profession (Marketing, Finance, etc.):

Supply Chain

Work Level:

WL 1

Main Job Purpose:

(A concise statement setting out the main purpose and objectives of the job.)

Manages spare part inventory, ensuring accurate records and availability in line with planned
maintenance schedules.

Key Accountabilities:
(Please describe the responsibilities and end results that would be expected.)

• Perform accurate counts of individual spare parts in line with agreed parameters set by the
Maintenance Planner.

• Conduct and record stock counts at frequency agreed with Maintenance Planner.

• Maintain accurate records on CMMS for spare parts.

• Liaise with Maintenance Planner and Finance to manage orders to agreed levels.

• Maintain standards of 5S within the storeroom to provide easy and quick access to spare parts.

• Investigate stock shortages and take actions to resolve problems.

2.5.6 Multi/Single Skill Technician - Maintenance

Technician
Maintenance technicians use a wide variety of skills and tools to install and maintain plant
equipment and assets. They perform regular preventive maintenance activities and diagnose and
repair breakdowns in line with all appropriate standards.

34
Maintenance Organisation | Maintenance Roles and Responsibilities

Illustration
Unilever WL 1 Job Description for Multi/Single Skilled Technician - Maintenance Technician

Job Title:

Multi/Single Skilled Technician - Maintenance Technician

Department:

Engineering

Profession (Marketing, Finance, etc.):

Supply Chain

Work Level:

WL 1

Main Job Purpose:

(A concise statement setting out the main purpose and objectives of the job.)

Maintain skills and knowledge to conduct effective planned maintenance activities to maximise equipment
availability. Continually seek to improve standards for both preventive and breakdown maintenance activities by
recommending improvements to the Maintenance Supervisor.

Key Accountabilities:
(Please describe the responsibilities and end results that would be expected.)

• Reference supplier manuals to ensure maintenance of skills to perform tasks in line with expected standards
(e.g. quality and time).

• Install and maintain plant equipment.

• Conduct breakdown repairs to maintain production.

• Execute scheduled maintenance activities.

• Undertake mechanic skills in execution of duties including electrical, mechanical and pneumatic.

• Adopt EWO analysis to diagnose breakdowns to identify whether to replace or repair parts.

• Identify equipment / material malfunctions and raise to supervisor as appropriate.

• Conduct all work activities in line with Unilever safety standards and safe working practices.

35
 3 MAINTENANCE PERFORMANCE
INDICATORS

3.1 KEY PERFORMANCE AND ACTIVITY INDICATORS ........................... 39

3.1.1 Differences Between Leading and Lagging Indicators ............................... 39
3.1.2 Unilever Standard for Key Performance Indicators .................................. 40

3.2 INTEGRATION OF MAINTENANCE FROM STRATEGIC TO SHOP

FLOOR LEVELS ................................................................................... 40

3.3 MAINTENANCE SCORECARD ............................................................ 41

3.3.1 Safety: Total Recordable Frequency Rate (TRFR) ..................................... 45
3.3.2 Safety: Safety Behaviour Observation ................................................... 45
3.3.3 Environment: Carbon Dioxide (Co2) from Energy ..................................... 45
3.3.4 Environment: Energy ........................................................................ 46
3.3.5 Environment: Hazardous Waste .......................................................... 46
3.3.6 Environment: Non-hazardous Waste .................................................... 46
3.3.7 Environment: Total Water .................................................................. 47
3.3.8 Environment: Total Chemical Oxygen Demand (COD) ................................ 47
3.3.9 Cost: Maintenance Cost .................................................................... 47
3.3.10 Cost: Percentage Reactive Maintenance Cost ......................................... 48
3.3.11 Cost: Percentage Preventive Maintenance Cost ....................................... 48
3.3.12 Cost: Percentage Predictive Maintenance Cost ....................................... 48
3.3.13 Cost: Percentage Maintenance Shutdown Cost ....................................... 49

Maintenance Benchmark

Maintenance KPI

Maintenance Cost MTBF MTTR/r

m Energy Month End Inventory % Project Cost # of Breakdowns

36
Value % Project OEE % Breakdown
3.3.14 Cost: Percentage Overtime Maintenance Cost ........................................ 49
3.3.15 Reliability: Mean Time Between Failures (MTBF) .................................... 50
3.3.16 Maintainability: Mean Time to Repair/replace (MTTR/r) ............................ 50
3.3.17 Maintenance Downtime Related: Number of Breakdowns ......................... 51
3.3.18 Maintenance Downtime Related: Percentage Breakdown .......................... 51
3.3.19 Maintenance Downtime Related: Percentage Reactive Maintenance Hours .... 51
3.3.20 Maintenance Downtime Related: Percentage Preventive Maintenance Hours .. 52
3.3.21 Maintenance Downtime Related: Percentage Predictive Maintenance Hours .. 52
3.3.22 Maintenance Downtime Related: Percentage Planned Work ...................... 53
3.3.23 Maintenance Downtime Related: Percentage Unplanned Work ................... 53
3.3.24 Maintenance Task Related (Planning): Amount of Planned Work ................. 54
3.3.25 Maintenance Task Related (Planning): Responsiveness of Planning ............. 54
3.3.26 Maintenance Task Related (Planning): Quality of Planning ......................... 55
3.3.27 Maintenance Task Related (Scheduling): Quality of Scheduling ................... 56
3.3.28 Maintenance Task Related (Scheduling): Schedule Compliance .................. 56
3.3.29 Maintenance Task Related (Execution): Work Order Completion .................. 57
3.3.30 Maintenance Task Related (Follow Up): Work Order Closure ...................... 57
3.3.31 Morale: Absenteeism ....................................................................... 58
3.3.32 Learning: Skill Compliance ............................................................... 58
3.3.33 Storeroom Related: Month End Inventory Value ...................................... 58
3.3.34 Storeroom Related: Service Level Percentage ........................................ 59
3.3.35 Storeroom Related: Number of Stock Turns ........................................... 59
3.3.36 Storeroom Related: Inventory Accuracy Percentage ................................. 60
3.3.37 Storeroom Related: Slow Moving Parts Percentage ................................. 60
3.3.38 Storeroom Related: Percentage Vendor On-time Delivery .......................... 61
3.3.39 Storeroom Related: Percentage Vendor Accurate Delivery ......................... 61
3.3.40 Storeroom Related: Mean Time to Order Emergency Parts ........................ 61

37
 3.3.41 Storeroom Related: Mean Time to Order Normal Parts ............................. 62
3.3.42 Project Related: Percentage Project Cost .............................................. 62
3.3.43 Project Related: Percentage Project OEE .............................................. 62
3.3.44 Project Related: Percentage Project Start-up ......................................... 63
3.3.45 Project Related: Project Life Cycle Cost ................................................ 63
3.3.46 Project Related: Number of Maintenance Prevention Info Issued ................ 63
3.3.47 Project Related: Checklist Implement and Increase ................................. 64
3.3.48 Project Related: Number of Change Requests ........................................ 64
3.3.49 Project Related: Number of Problems Found in Steps .............................. 64
3.3.50 Project Related: Percentage of Problems Solved ..................................... 64

3.4 HOW MAINTENANCE KPIs ARE USED .............................................. 65

3.4.1 KPIs and Benchmarking ................................................................... 65
3.4.2 Cost: Maintenance Cost per Gross Book Value ....................................... 65
3.4.3 Cost: Maintenance Cost per Production Tonne ....................................... 66
3.4.4 Cost: Maintenance Cost per Production Cost ......................................... 66

3.5 KPIs AND KAIs FOR MAINTENANCE PERSONNEL .......................... 67

38
Maintenance Performance Indicators | Key Performance and Activity Indicators

3 MAINTENANCE PERFORMANCE
INDICATORS
Introduction
Since maintenance activities are multidisciplinary in nature with a large number of inputs
and outputs, an integrated holistic approach must be used to measure the performance of
maintenance. Measuring performance provides a way to monitor and control maintenance
processes and then identify and implement appropriate preventive and corrective actions. It also
provides the data required to evaluate the effectiveness and efficiency of assets and mitigate risks
in the areas of safety, health, and environment.

The main obstacle in measuring maintenance performance is the difficulty in identifying truly
objective criteria or indicators on which to base measurements. Unlike production, where outputs
can easily be measured based on production volume or cost, there is no single indicator of
maintenance output.

3.1 KEY PERFORMANCE AND ACTIVITY INDICATORS

Key performance indicators (KPIs) and key activity indicators (KAIs) are used to measure different
parts of a business:

• KPIs are measures of performance. They are extremely important in determining whether the
high-level strategic objectives of the business are being (or will be) met. Examples are OEE,
production cost and maintenance cost.

• KAIs are measures of how well activities are being performed compared to a target. The more
standardised a process is, the more stable it is, and the easier it is to improve. Examples are
quality of scheduling and work order completion.

3.1.1 Differences Between Leading and Lagging Indicators

KPIs can be classified as leading or lagging indicators considering the following characteristics:

Leading Indicators Lagging Indicators

Leading indicators are used to manage a part Lagging indicators measure how well we have
of the business. managed in the past.

Leading indicators lead to results such as Lagging indicators are the results such as
schedule compliance. maintenance cost, which will be affected if
scheduling is not working properly.

Leading indicators make it possible to directly Lagging indicators provide little opportunity to
and immediately respond when a poor result is immediately affect underperformance. To
found. uncover the cause requires drilling down to the
leading indicators.

39
Maintenance Performance Indicators | Integration of Maintenance From Strategic to
Shop Floor Levels

3.1.2 Unilever Standard for Key Performance Indicators

In Europe a principal role in harmonising KPIs is played by the European Federation of
National Maintenance Societies (EFNMS). This organisation has generated a European
standard (EN 15341) for managing KPIs in three main categories: Economical, Technical and
Organisational. In parallel for North America, the Society of Maintenance and Reliability
Professionals (SMRP) has developed a system of maintenance performance metrics divided
into 5 groups: Business and Management, Manufacturing Process Reliability, Equipment
Reliability, Organization & Leadership and Work Management.

The two groups started the process of harmonising both systems in 2006, and most indicators
have now been harmonised. EN is a common standard used by Unilever.

3.2 INTEGRATION OF MAINTENANCE FROM

STRATEGIC TO SHOP FLOOR LEVELS
The maintenance strategy should be derived from and integrated with the company strategy. In
order to accomplish the top-level objectives of the maintenance strategy, performance indicators
must be cascaded down to teams and individuals. Before they are communicated, performance
indicators must be translated into the appropriate language and meaning for each functional or
shop floor level. The adoption of fair processes is the key to successfully aligning these goals.
It is also beneficial to harness the energy and creativity of committed managers and technicians,
who can help drive the desired results.

40
Maintenance Performance Indicators | Maintenance Scorecard

Illustration
From a hierarchical point of view, KPIs and KAIs can be translated into the various
organisational levels. However, maintenance management must ensure all KPIs are economically
linked. Normally, cost per tonne (CPT) and R&M CPT are tightly linked. This should be the same
situation for the lower level of the hierarchy.

For example, the labour CPT must correspond to the total needed hours (planned and unplanned).
The planned cost should be linked with the machine ledger. The unplanned maintenance cost
should be an output from number of breakdowns and mean time to repair/replace (MTTR/r).
This will be the base for controlling maintenance performance and cost.

CPT
Production Cost
Factory R&M CPT
R&M Cost

OEE OEE
Department/ Technician Utilisation Technician Utilisation
Area Hours/Line/Year
Material Cost/Line
Hours/Line/Year
Material Cost/Line

Number of Breakdowns Number of Breakdowns Number of Breakdowns

MTBF MTBF MTBF
Line MTTR/r MTTR/r MTTR/r
Work Order Completion Work Orders Completion Work Order Completion

3.3 MAINTENANCE SCORECARD

The maintenance scorecard provides guidance to all Maintenance Departments in establishing
KPIs and KAIs. The scorecard should be modified by each factory to meet their unique
organisational and operational needs. The KPIs and KAIs selected should then be cascaded
down to individuals based on their roles and responsibilities.

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Maintenance Performance Indicators | Maintenance Scorecard

Illustration
The maintenance scorecard groups KPIs and KAIs by criteria: Safety, Health, and Environment
(SHE), Cost, Reliability, Maintainability, Maintenance Downtime, Maintenance Task (Planning,
Scheduling, Execution and Follow up), Morale, Learning, Storeroom and Project.

Criteria Type Performance Indicator World Class Target Level

Safety KPI 1. Total Recordable Frequency Rate (TRFR) Zero

KAI 2. Safety Behaviour Observation (SBO) Context specific

Environment KPI 3. Carbon Dioxide (CO 2 ) from Energy

4. Energy

5. Hazardous Waste
Context specific
6. Non-hazardous Waste

7. Total Water

8. Total Chemical Oxygen Demand (COD)

Cost KPI 9. Maintenance Cost

10. % Reactive Maintenance Cost

11. % Preventive Maintenance Cost

Context specific
12. % Predictive Maintenance Cost

13. % Maintenance Shutdown Cost

KAI 14. % Overtime Maintenance Cost

Reliability KPI 15. Mean Time Between Failures (MTBF) Context specific

Maintainability KPI 16. Mean Time to Repair/replace (MTTR/r) Context specific

Maintenance KPI 17. # of Breakdowns

Downtime
Related 18. % Breakdown

19. % Reactive Maintenance Hours

20. % Preventive Maintenance Hours Context specific

21. % Predictive Maintenance Hours

22. % Planned Work

23. % Unplanned Work

Maintenance KAI 24. Amount of Planned Work >95% compliance

Task Related
(Planning) 25. Responsiveness of Planning >80% of all WOs planned in 5 days or less

26. Quality of Planning Parts: <2% of scheduled WOs delayed

due to spare part deficiencies
Labour: >90% of closed WOs with
man-hour estimates within 10% of actual

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Criteria Type Performance Indicator World Class Target Level

Maintenance KAI 27. Quality of Scheduling >95% compliance

Task Related
(Scheduling) 28. Schedule Compliance >95% compliance

Maintenance KAI 29. Work Order Completion 95% compliance

Task Related
(Execution)

Maintenance KAI 30. Work Order Closure >95% compliance

Task Related
(Follow up)

Morale KAI 31. Absenteeism Context specific

Learning KAI 32. Skill Compliance Context specific

Storeroom KPI 33. Month End Inventory Value Context specific

Related
34. Service Level % 99%

35. # of Stock Turns Repairables: 2 turns

Consumables: 4 turns

KAI 36. Inventory Accuracy % 100%

37. Slow Moving Parts % Less than 10%

38. % Vendor On-time Delivery 98%

39. % Vendor Accurate Delivery 98%

40. Mean Time to Order Emergency Parts Context specific

41. Mean Time to Order Normal Parts Based on factory-specific lead times as
defined in spare part management
process.

Project Related KPI 42. % Project Cost

43. % Project OEE

44. % Project Start-up

45. Project Life Cycle Cost

KAI 46. # of Maintenance Prevention

Context specific
Info Issued

47. Checklist Implement and Increase

48. # of Change Requests

49. # of Problems Found in Steps

KPI 50. % of Problems Solved

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Maintenance Performance Indicators | Maintenance Scorecard

Example
This is an example of how KPIs and KAIs are used for maintenance personnel. KPIs and KAIs are
summarised and reported for all assets at the level of organisational responsibility.

Maintenance Benchmark

Maintenance KPI

TRFR Maintenance Cost MTBF MTTR/r

CO2 from Energy Month End Inventory % Project Cost # of Breakdowns

Energy Value % Project OEE % Breakdown
Hazardous Waste Service Level % % Project Start-up % Reactive
Non-hazardous Number of Stock Maintenance Hours
Waste Turns % Preventive
Total Water Maintenance Hours
Total Chemical % Predictive
Oxygen Demand Maintenance Hours
(COD) % Planned Work
% Unplanned Work

Maintenance KAI

Safety Cost Storeroom Related

SBO % Overtime Maintenance Cost Inventory Accuracy %

Slow Moving %

Maintenance Task Maintenance Task Maintenance Task

Related (Planning) Related (Scheduling) Related (Execution)
Amount of Planned Work Quality of Scheduling Work Order Completion
Responsiveness of Planning
Quality of Planning

Maintenance Task
Morale Learning
Related (Follow up)
Work Order Closure Absenteeism Skill Compliance

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3.3.1 Safety: Total Recordable Frequency Rate (TRFR)

Definition Total recordable frequency rate (TRFR) is expressed as a rate of lost time
accident (LTA), restricted work case (RWC), and medical treatment case (MTC)
per million hours worked. It includes all workplace accidents except those
that require simple first-aid treatment.

(LTA + RWC + MTC) x 1.000.000

Formula TRFR =
Hours worked

Measure Rate per million hours worked.

3.3.2 Safety: Safety Behaviour Observation

Definition Safety behaviour observation (SBO) is an interaction with people to
first observe how they work and to then reinforce or correct their
safety behaviours.

Measure Number of SBOs completed in line with individual observation targets, which
are set by each factory.

Comment The analysis resulting from observations must frequently be used as leading
KPIs in order to make future improvements. The improvements can focus
on the people-engagement process in SBO interactions as well as the
category-wide frequency of unsafe acts or unsafe conditions measured.

3.3.3 Environment: Carbon Dioxide (Co2) from Energy

Definition Unilever externally reports its carbon dioxide (CO2) emissions from energy.
The data is calculated based on the amounts and types of fuel and electricity
used and on standard conversion factors. The reference for the emission
factors is the Greenhouse Gas Protocol standards. For electricity,
country-specific CO2 emissions data is used. It is sourced from the
International Energy Agency (IEA) based on how the electricity is generated
in the national grid. In all cases, CO2 emissions are automatically calculated
using the Environmental Performance Reporting (EPR) System.

∑(Energy consumption (kg) × CO2 emission factor)

Formula CO2 from Energy =
∑Production volume (tonne)

Measure Kilogram per production tonne.

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3.3.4 Environment: Energy

Definition The term ‘energy’ represents energy consumed from all fuel sources.
Unilever factories use different sources of energy depending on their
production processes and geographic locations.

∑Energy consumption (GJ) from each fuel source

Formula Energy =
∑Production volume (tonne)

Measure Gigajoule (GJ) per production tonne.

3.3.5 Environment: Hazardous Waste

Definition Hazardous waste has properties that make it potentially dangerous or harmful
to human health or the environment. It can be a liquid, solid or contained gas.
Since there is not a common international waste classification, Unilever data
is based on country-specific legal definitions applicable for each factory.

∑Quantity of waste (kg) for each hazardous waste stream

Formula Hazardous Waste =
∑Production volume (tonne)

Measure Kilogram per production tonne.

3.3.6 Environment: Non-hazardous Waste

Definition Non-hazardous waste is the quantity of waste in kilograms that is sent off-site
for disposal such as to an incinerator or a recycling facility. Waste is classified
as non-hazardous based on country- or region-specific legal definitions
applicable to each factory.

∑Quantity of waste (kg)

for each non-hazardous waste stream
Formula Non-hazardous Waste =
∑Production volume (tonne)

Measure Kilogram per production tonne.

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3.3.7 Environment: Total Water

Definition Total water is the sum of potable (drinking quality) and non-potable
(lower quality) water consumed in cubic metres. Water consumption is
measured in all Unilever’s factories and includes:

• Water used as an ingredient in products.

• Uncontaminated non-contact cooling water.

• Wastewater from production processes and civil / hygienic needs.

∑(Potable water (m3) + Non potable water (m3))

Formula Total Water =
∑Production volume (tonne)

Measure Cubic metres per production tonne.

3.3.8 Environment: Total Chemical Oxygen Demand (COD)

Definition Total chemical oxygen demand (COD) represents the ingredients and
products lost from manufacturing processes. It happens mainly during
cleaning operations.

∑COD load (kg) (watercourse and water treatment)

Formula Total COD =
∑Production volume (tonne)

Measure Kilogram per production tonne.

Comment COD is widely used by regulatory agencies to control industrial

wastewaters and to calculate the amount to charge for downstream
municipal wastewater treatment. Treatment facilities are designed
to remove most of the COD before wastewater is discharged into
the environment.

3.3.9 Cost: Maintenance Cost

Definition Maintenance cost is the cost incurred in a specified time period (e.g. monthly,
quarterly or annually) to repair and maintain equipment / assets. It includes
the cost of spare parts (repairables and consumables), maintenance labour,
and third-party services.

Formula Maintenance Cost = Spare parts + Maintenance labour + Third-party services

Measure Local currency and Euro.

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3.3.10 Cost: Percentage Reactive Maintenance Cost

Definition Percentage reactive maintenance cost measures the percentage of
maintenance cost that is used to restore equipment / assets to a
functional state after failures / breakdowns. It includes breakdown
maintenance, or emergency work orders.

Reactive maintenance cost

Formula % Reactive Maintenance Cost = x 100
Maintenance cost

Measure Percentage.

Comment This KPI quantifies the financial impact of work done on reactive
maintenance tasks. Comparing the trend of this KPI to trends for other
types of maintenance KPIs (e.g. preventive and predictive) can help
personnel evaluate the effectiveness of maintenance activities.

3.3.11 Cost: Percentage Preventive Maintenance Cost

Definition Percentage preventive maintenance cost measures the percentage of
maintenance cost that is used to perform fixed-interval maintenance tasks,
regardless of the condition of equipment / assets at the time.

Preventive maintenance cost

Formula % Preventive Maintenance Cost = x 100
Maintenance cost

Measure Percentage.

Comment This KPI quantifies the financial impact of work done on preventive
maintenance tasks. Comparing the trend of this KPI to trends for other types
of maintenance KPIs (e.g. reactive and predictive) can help personnel evaluate
the effectiveness of maintenance activities.

3.3.12 Cost: Percentage Predictive Maintenance Cost

Definition Percentage predictive maintenance cost measures the percentage of
maintenance cost that is used to measure, trend and compare the condition
of equipment / assets against known standards in order to detect, analyse
and correct problems before they cause functional failures / breakdowns.

Predictive maintenance cost

Formula % Predictive Maintenance Cost = x 100
Maintenance cost

Measure Percentage.

Comment This KPI quantifies the financial impact of work done on predictive
maintenance tasks. Comparing the trend of this KPI to trends for other
types of maintenance KPIs (e.g. reactive and preventive) can help
personnel evaluate the effectiveness of maintenance activities.

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3.3.13 Cost: Percentage Maintenance Shutdown Cost

Definition Percentage maintenance shutdown cost measures the total cost incurred
for a planned maintenance shutdown. It is expressed as a percentage of the
maintenance cost for the period in which the shutdown occurred.

Shutdown maintenance cost

Formula % Maintenance Shutdown Cost = x 100
Maintenance cost

Measure Percentage.

Comment This KPI quantifies the contribution of planned maintenance shutdown cost
to maintenance cost. This percentage can then be compared to industry
benchmarks, used as a basis for future zero-based budgeting, and analysed
for cost reduction opportunities.

3.3.14 Cost: Percentage Overtime Maintenance Cost

Definition Percentage overtime maintenance cost measures the percentage of
maintenance labour cost that was incurred using overtime to maintain
equipment / assets.

Overtime labour cost

Formula % Overtime Maintenance Cost = x 100
Maintenance labour cost

Measure Percentage.

Comment This KAI is used to determine whether the in-house maintenance workforce
is performing effectively and is appropriately staffed for the maintenance
workload. Where actuals for this KAI exceed expectations, this formula can
be used to assess spend by group (e.g. maintenance technician).

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3.3.15 Reliability: Mean Time Between Failures (MTBF)

Definition Mean time between failures (MTBF) measures the average length of
time in hours that has elapsed from one failure / breakdown to the next
failure / breakdown.

Operating time (hours) - Breakdown (hours)

Formula MTBF =
Number of breakdowns

Measure Average hours.

Comment Operating time is defined in the Managing Manufacturing Performance Code

as loading time minus process driven losses. Process driven losses occur
when a production line is intentionally stopped to complete certain activities
on a machine or line.

MTBF is used primarily to assess the reliability of repairable assets or

components of similar types. Reliability is usually expressed as the probability
that an asset or component will perform its intended function without failure /
breakdown for a specified time period under specified conditions. When
analysing the trend, an increase in MTBF indicates improved asset reliability.

A related term, mean time to failure (MTTF) is used primarily for

non-repairable assets and components (e.g. light bulbs). Both terms
are a measure of asset reliability and are also known as mean life.

3.3.16 Maintainability: Mean Time to Repair/replace

3.3.16 (MTTR/r)
Definition Mean time to repair/replace (MTTR/r) measures the average length of
maintenance time it takes to repair or replace equipment / assets after
failures / breakdowns. Maintenance time is the number of hours between
when a failure / breakdown initially occurred and the moment the system
is returned to production. It includes notification time, diagnostic time, wait
time, repair or replace time, test time, and then back to normal production.

∑Maintenance time (hours)

Formula MTTR/r =
Number of repairs and replacements

Measure Average hours.

Comment This KPI yields information that can help maintenance personnel make a
variety of informed decisions, such as whether to 1) repair, replace or hire,
2) optimise the maintenance schedule, and 3) store a spare part onsite or
change the strategy.

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3.3.17 Maintenance Downtime Related: Number of

Breakdowns
Definition Number of breakdowns measures the total number of failure / breakdown
events that occurred in a specified time period (e.g. monthly, quarterly
or annually).

Measure Number of breakdowns.

Comment This KPI should be analysed as a trend in order to evaluate overall changes
in failure / breakdown occurrences.

3.3.18 Maintenance Downtime Related: Percentage

Breakdown
Definition Percentage breakdown measures the percentage of loading time that is
attributable to failure / breakdown time.

Breakdown time (hours)

Formula % Breakdown = x 100
Loading time (hours)

Measure Percentage.

Comment Breakdown maintenance as a part of reactive maintenance should be reduced

to a minimum. It should only be performed as a part of reactive maintenance
when the components are inexpensive and easy to replace, the failure does
not cause collateral damage to the process, and the cost (causal + resultant)
of reactive maintenance is less than preventative maintenance.

3.3.19 Maintenance Downtime Related: Percentage Reactive

Maintenance Hours
Definition Percentage reactive maintenance hours measures the percentage of
maintenance labour hours that are used to restore equipment / assets to
a functional state after failures / breakdowns. It includes breakdown
maintenance, or emergency work orders.

Reactive maintenance
activities (hours)
Formula % Reactive Maintenance Hours = x 100
Maintenance activities (hours)

Measure Percentage.

Comment This KPI quantifies the impact of reactive maintenance work on the labour
resources. Comparing the trend of this KPI to trends for other types of
maintenance hour KPIs (e.g. preventive and predictive) can help personnel
evaluate the effectiveness of maintenance activities.

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3.3.20 Maintenance Downtime Related: Percentage

Preventive Maintenance Hours
Definition Percentage preventive maintenance hours measures the percentage
of maintenance labour hours that are used to perform fixed-interval
maintenance activities, regardless of the condition of equipment / assets
at the time.

Preventive maintenance
activities (hours)
Formula % Preventive Maintenance Hours = x 100
Maintenance activities (hours)

Measure Percentage.

Comment This KPI quantifies the impact of preventive maintenance work on the
labour resources. Comparing the trend of this KPI to trends for other types
of maintenance hour KPIs (e.g. reactive and predictive) can help personnel
evaluate the effectiveness of maintenance activities.

3.3.21 Maintenance Downtime Related: Percentage

Predictive Maintenance Hours
Definition Percentage predictive maintenance hours measures the percentage of
maintenance labour hours that are used to measure, trend and compare
the condition of equipment / assets against known standards in order to
detect, analyse and correct problems before they cause functional
failures / breakdowns.

Predictive maintenance
activities (hours)
Formula % Predictive Maintenance Hours = x 100
Maintenance activities (hours)

Measure Percentage.

Comment This KPI quantifies the impact of predictive maintenance work on the labour
resources. Comparing the trend of this KPI to trends for other types of
maintenance hour KPIs (e.g. reactive and preventive) can help personnel
evaluate the effectiveness of maintenance activities.

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3.3.22 Maintenance Downtime Related: Percentage

Planned Work
Definition Percentage planned work measures the percentage of maintenance
labour hours that are used to perform planned maintenance activities.
The maintenance planner identifies the work that is planned for execution.

Planned maintenance activities (hours)

Formula % Planned Work = x 100
Maintenance activities (hours)

Measure Percentage.

Comment This KPI quantifies the amount of planned work that is being executed. It
measures the effectiveness of planning processes for routine maintenance.
It is also a secondary indicator of craft utilisation and can provide insight into
the potential to improve active repair time.

3.3.23 Maintenance Downtime Related: Percentage

Unplanned Work
Definition Percentage unplanned work measures the percentage of maintenance
labour hours that are used to perform unplanned maintenance activities.
Any work completed that was not planned for execution by the maintenance
planner is categorised as unplanned work.

Unplanned maintenance activities (hours)

Formula % Unplanned Work = x 100
Maintenance activities (hours)

Measure Percentage.

Comment A high percentage of unplanned work indicates a reactive work environment

and a lack of proper planning. This KPI measures the effectiveness of
planning process for routine maintenance. It is a secondary indicator of
craft utilisation and can provide insight into the potential to improve active
repair time.

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3.3.24 Maintenance Task Related (Planning): Amount of

Planned Work
Definition Amount of planned work measures the percentage of work orders (WOs)
planned over a specified time period where all of the planning fields (e.g.
labour assignments, task durations, work priority, tools required and required
by date) were completed.

Number of WOs with all planning

fields completed
Formula Amount of Planned Work = x 100
Number of WOs planned
Measure Percentage.

Comment For this KAI, the world class target level is more than 95% of WOs will be
planned with all planning fields completed.

3.3.25 Maintenance Task Related (Planning): Responsiveness

of Planning
Definition Responsiveness of planning measures the percentage of WOs created over
a specified time period that moved from the created status to the planned
status within 5 days of their created date.

Number of WOs planned

5 days or less after created date
Formula Responsiveness of Planning = x 100
Number of WOs created

Measure Percentage.

Comment For this KAI, the world class target level is at least 80% of WOs will be
planned within a maximum of 5 days from their created dates. For WOs
that require more than 5 days to plan, maintenance planners must focus
on meeting the “late finish or required by date”.

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3.3.26 Maintenance Task Related (Planning): Quality of

Planning
A critical aspect of planning is estimating the resources required to complete a WO. The quality
of planning can be measured by quantifying the accuracy of resource requirement estimates.
Typically, most of the resources specified on a WO are for spare parts and maintenance labour,
and there is a different quality formula for each one.

Definition Quality of planning for spare parts measures the percentage of WOs
scheduled over a specified time period where execution was delayed due
to a lack of spare part(s).

Number of WOs delayed due to

lack of spare part(s)
Formula Quality of Planning for Spare Parts = x 100
Number of WOs scheduled

Measure Percentage.

Comment For this KAI, the world class target level is less than 2% of scheduled WOs
will be delayed due to a lack of spare part(s). This KAI assumes the job should
not have been scheduled if all of the spare parts were not available. Any delay
would be from the WO not accounting for availability of all the required parts.

Definition Quality of planning for labour measures the percentage of WOs closed over
a specified time period where man-hour estimates were within 10% of actual
man-hours.

Number of WOs closed with

man-hour estimates within 10%
of actual
Formula Quality of Planning for Labour = x 100
Number of WOs closed

Measure Percentage.

Comment For this KAI, the world class target level is more than 90% of WOs closed will
have man-hour estimates within 10% of actual.

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Maintenance Performance Indicators | Maintenance Scorecard

3.3.27 Maintenance Task Related (Scheduling): Quality

of Scheduling
Definition Quality of scheduling measures the percentage of WOs scheduled over a
specified time period that have a scheduled completion date earlier or equal
to the “late finish or required by date”.

Number of WOs scheduled earlier or

equal to the "late finish or required by date"
Formula Quality of Scheduling = x 100
Number of WOs scheduled

Measure Percentage.

Comment For this KAI, the world class target level is more than 95% of WOs will have
scheduled completion dates that are earlier or equal to the “late finish or
required by date”. This will help ensure the majority of WOs could be
completed before their “late finish or required by date.”

3.3.28 Maintenance Task Related (Scheduling): Schedule

Compliance
Definition Schedule compliance measures how well the maintenance technician / crew
kept to the scheduled allocation of work for the week and the measurement
adherence to the week -1 schedule.

Number of WOs scheduled w -1

initiated/started
Formula Schedule Compliance = x 100
Number of WOs scheduled w -1

Measure Percentage.

Comment For this KAI, the world class target level is more than 95% compliance. The
schedule compliance percentage can facilitate discussion and identification
of plant problems between maintenance managers and supervisors. The
technician and supervisor may need to send job feedback to the planning
department to prevent certain problem areas from hindering future work.

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3.3.29 Maintenance Task Related (Execution): Work Order

Completion
Definition Work order completion measures the percentage of WOs scheduled over a
specified time period that were executed.

Number of WOs executed

Formula WO Completion = x 100
Number of WOs scheduled

Measure Percentage.

Comment There are two types of maintenance WOs: 1) maintenance requests that
include tagging / de-tagging and emergency work orders and 2) planned
maintenance that includes preventive maintenance and predictive
maintenance. Each type of WO has a unique process flow as defined in
4.2 Work Order System.

The percentage of WOs executed from tagging / de-tagging activities and

planned maintenance without any rework or additional planning are expected
to achieve 95% compliance. This percentage includes WOs executed with all
the data fields completed.

3.3.30 Maintenance Task Related (Follow Up): Work Order

Closure
Definition Work order closure measures the percentage of WOs executed over a
specified time period that moved from the executed status to the closed
status within 3 days of the executed date.

Number of WOs reviewed

and closed within 3 days of executed date
Formula WO Closure = x 100
Number of WOs executed

Measure Percentage.

Comment For this KAI, the world class target level is more than 95% of WOs executed
will be reviewed and closed within a maximum of 3 days from the executed
date. Timely follow-up and closure of executed WOs is a measure of the
Maintenance Department’s responsiveness and discipline.

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3.3.31 Morale: Absenteeism

Definition Absenteeism measures the percentage of maintenance hours
(actual worked + absent) that were lost due to employee absenteeism.

Number of absent hours

Formula Absenteeism = x 100
Number of actual maintenance hours worked
+ absent hours

Where:

• Number of absent hours includes illness, lost time accidents, absence

without reason, long-term illness, and illness whilst pregnant.

• Number of absent hours excludes vacation, absence with company

interest or permission (e.g. blood donation, vaccination), maternity leave
and training.

Measure Percentage.

3.3.32 Learning: Skill Compliance

Definition Skill compliance measures the actual current skill rating of maintenance
personnel as a percentage of the required skill matrix rating for their roles
and responsibilities over a specified time period (e.g. semester, annually).

Current skill rating

Formula Skill Compliance = x 100
Required skill rating

Measure Percentage.

Comment Further improvement of skills by area should be displayed on the radar chart.

3.3.33 Storeroom Related: Month End Inventory Value

Definition Month end inventory value is the monetary value of all spare parts in stock
on the last business day of the month. It is calculated by summing the
quantity multiplied by the purchase value for every item in stock.

Formula Month End Inventory Value = ∑(Quantity × Purchase Value)n

Measure Local currency and Euro.

Comment The optimal condition is to have 100% of spare parts available while holding
the lowest possible levels of spare parts in stock. The seven-step spare part
management process outlined in Section 7 provides a roadmap for achieving
this optimal condition.

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3.3.34 Storeroom Related: Service Level Percentage

Definition Service level percentage measures the percentage of total storeroom
requisitions that were filled on time, in full for a specified time period
(e.g. monthly, annually).

Number of requisitions on time in full

Formula Service Level % = x 100
Number of storeroom requisitions

Measure Percentage.

Comment For this KPI, the world class target level is 99%.

3.3.35 Storeroom Related: Number of Stock Turns

Definition Number of stock turns is an inventory metric that measures the rate at
which the storeroom inventory is used. The most typical way to calculate
turns is the annual consumption value divided by the inventory value average
for the last 12 months.

Annual consumption value

Formula Number of Stock Turns =
Inventory value average for last 12 months

Where:

Inventory value average for last 12 months = the sum of ending inventory
values for each of the last 12 months divided by 12.

Measure Times.

Comment Stock turns does work with spare parts inventory at an aggregate level, that
is, by applying the measure holistically across all items held as inventory. In
this way stock turns is a measure of investment efficiency.

• A low stock turn indicates that there may be a mismatch between the
total value held and the value used. Understanding why requires a root
cause analysis (RCA), which is assisted by having clearly defined stock
categories.

• A high stock turn indicates the total investment level is more in line with
the usage level.

For this KAI, the target level is 2 turns for repairables and 4 turns for
consumables.

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3.3.36 Storeroom Related: Inventory Accuracy Percentage

Definition Inventory accuracy percentage compares a physical count and location
of individual items in stock to the quantity and location recorded in the
inventory management system.

Number of parts hit

Formula Inventory Accuracy % = x 100
Number of parts counted

Where:

Hit = physical count shows both quantity and location are identical to
the system.

No Hit = physical count shows either or both quality and location are
different to the system.

Measure Percentage.

Comment For this KAI, the world class target level is 100%.

3.3.37 Storeroom Related: Slow Moving Parts Percentage

Definition Slow moving parts percentage measures the percentage of the month end
inventory value that has been in the storeroom for more than 120 days.

Slow moving value

Formula Slow Moving Parts % = x 100
Total value of parts in storeroom

Where:

Slow moving value = the month end inventory value of items that have been
in the storeroom more than 120 days.

Total value of parts in storeroom = the total month end inventory value for
the storeroom.

Measure Percentage.

Comment For this KAI, the world class target level is less than 10%.

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3.3.38 Storeroom Related: Percentage Vendor On-time

Delivery
Definition Percentage vendor on-time delivery measures the number of spare part line
items received at the correct location within the on-time delivery window as a
percentage of the number of line items ordered over a specified time period.

Number of line items received within

on-time delivery window
Formula % Vendor on-time Delivery = x 100
Number of line items ordered

Measure Percentage.

Comment For this KAI, the world class target level is 98%.

3.3.39 Storeroom Related: Percentage Vendor Accurate

Delivery
Definition Percentage vendor accurate delivery measures the number of spare part line
items received in the quantities ordered as a percentage of the number of
line items ordered over a specified time period.

Number of line items received in

quantities ordered
Formula % Vendor Accurate Delivery = x 100
Number of line items ordered

Measure Percentage.

Comment For this KAI, the world class target level is 98%.

3.3.40 Storeroom Related: Mean Time to Order

Emergency Parts
Definition Mean time to order emergency parts measures the average time in days
between when an order for emergency spare parts is placed and when the
order is received at the correct location.

∑Lead times for emergency part

orders (days)
Formula Mean Time to Order Emergency Parts =
Number of emergency orders
placed

Measure Days.

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3.3.41 Storeroom Related: Mean Time to Order Normal Parts

Definition Mean time to order normal parts measures the average time in days
between when an order for normal (non-emergency) spare parts is placed
and when the order is received at the correct location.

∑Lead times for normal part

orders (days)
Formula Mean Time to Order Normal Parts =
Number of normal orders placed

Measure Days.

3.3.42 Project Related: Percentage Project Cost

Definition For new projects, percentage project cost measures the percentage of the
estimated project costs that have actually been incurred.

Actual project cost

Formula % Project Cost = x 100
Estimated project cost

Measure Percentage.

3.3.43 Project Related: Percentage Project OEE

Definition For new projects, percentage project overall equipment effectiveness
(OEE) measures the actual OEE for a specified time period (e.g. week 1
post start-up, weeks 2-4, etc.) as a percentage of the targeted OEE as
stated in the user requirements specification (URS) for the project.

Actual OEE
Formula % Project OEE = x 100
Targeted OEE

Measure Percentage.

Comment The Managing Manufacturing Performance Code states the standard

method of calculating OEE considers the actual good volume at the end of
the production line, as it was confirmed at the end of the production order,
along with the required loading time. The formula to calculate OEE is value
operating time divided by loading time.

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Maintenance Performance Indicators | Maintenance Scorecard

3.3.44 Project Related: Percentage Project Start-up

Definition For new projects, percentage project start-up measures the actual start-up
time as a percentage of the expected start-up time.

Start-up time actual

Formula % Project Start Up = x 100
Start-up time expected

Measure Percentage.

3.3.45 Project Related: Project Life Cycle Cost

Definition Project life cycle cost measures a project’s initial cost plus the running cost
for the entire life cycle of the piece of equipment / asset.

Formula Project Life Cycle Cost = Initial cost + Running cost

Measure Local currency and Euro.

Comment This KPI represents the WCM concept that a piece of equipment / asset must
be inexpensive, not only in terms of the initial investment but also in terms of
the total cost over its entire life.

3.3.46 Project Related: Number of Maintenance Prevention

Info Issued
Definition Number of maintenance prevention info issued is simply the number of times
that information collected from actual operations is sent to core design.

Measure Number of maintenance prevention info completed.

Comment Lessons learned in the past feed into the maintenance prevention info and
ultimately into core design. This is required in order to minimise or avoid
maintenance activities for future projects.

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Maintenance Performance Indicators | Maintenance Scorecard

3.3.47 Project Related: Checklist Implement and Increase

Definition Checklist implement and increase measures the number of project
checklists that have been implemented, primarily based on prior error
detection experiences.

Measure Number of checklists implemented.

Comment Checklists are needed at each step of the project to verify the degree of
compliance with 6 key design points: 1) safety design, 2) reliability design,
3) maintainability design, 4) AM design, 5) operation design, and
6) diagnosis design.

3.3.48 Project Related: Number of Change Requests

Definition Number of change requests measures the number of project change
requests that are submitted to suppliers in order to make corrections
or changes to the order, piece of equipment / asset, and specifications.

Measure Number of change requests submitted.

Comment Change requests are an indication of a project team’s ability to work with
suppliers based on their prior experiences with checklists and proactive
identification of potential issues.

3.3.49 Project Related: Number of Problems Found in Steps

Definition Number of problems found in steps measures the number of equipment-
related issues that were identified by the project team when working through
the project steps. The steps consist of all 6 key design points.

Measure Number of problems found.

3.3.50 Project Related: Percentage of Problems Solved

Definition Percentage of problems solved measures the ability of a project team to
resolve equipment-related issues that were identified when working through
the project steps. The steps consist of all 6 key design points.

Number of problems solved

Formula % of Problems Solved = x 100
Number of problems found in steps

Measure Percentage.

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Maintenance Performance Indicators | How Maintenance KPIs are Used

3.4 HOW MAINTENANCE KPIs ARE USED

Maintenance leading indicators provide a clear indication of compliance to maintenance KPIs
(lagging indicators). They indicate where to take specific actions because of a gap in the way
maintenance activities are being performed. This gap in the execution of the maintenance
process will ‘eventually’ lead to asset failures / breakdowns, which translates into poor
manufacturing performance.

Each metric should be deployed based on the asset hierarchy and in alignment with individual
responsibility for the assets. Management action should be directed at improving compliance
with the requirements of Work Identification, Planning, Scheduling, Execution and Follow up. In
this way, the process is managed leading to world class results. This logic is repeated at each
level of management in the organisation. At the plant and / or corporate level, management is
exercising accountability for plant-wide maintenance metrics for both processes and results.

3.4.1 KPIs And Benchmarking

The use of KPIs is not limited only to maintenance control. In fact, there are indicators that are
used for benchmarking maintenance as shown in the table:

Criteria Benchmark Indicators Benchmark Target

Cost Maintenance Cost per Gross Book Value 2-3%

Cost Maintenance Cost per Production Tonne Context specific

Cost Maintenance Cost per Production Cost 10-15%

3.4.2 Cost: Maintenance Cost per Gross Book Value

Definition Maintenance cost per gross book value (GBV) measures the cost incurred
annually to repair and maintain equipment / assets as a percentage of the
gross book value of the equipment / assets. Maintenance cost includes the
cost of spare parts (repairables and consumables), maintenance labour and
third-party services.

Spare parts + Maintenance labour +

Third-party services
Formula Maintenance Cost per GBV = x 100
Gross book value of equipment / assets

Measure Percentage.

Comment This metric allows comparisons of maintenance costs across plants of

different sizes and values, as well as to benchmarks. The GBV is used in
the denominator to normalise the measurement given that plants vary in
size and value. The world class benchmark is 2% to 3%.

65
Maintenance Performance Indicators | How Maintenance KPIs are Used

3.4.3 Cost: Maintenance Cost per Production Tonne

Definition Maintenance cost per production tonne measures the maintenance cost
required in order for an asset or facility to generate a tonne of production
volume over a specified time period (e.g. monthly, quarterly or annually).

Spare parts + Maintenance labour +

Formula Maintenance Cost Third-party services
=
per Production Tonne Production volume (tonne)

Measure Cost per production tonne.

Comment This metric provides a period-over-period trend of maintenance cost per

tonne. This measure can be applied to a specific asset, a group of assets
within a facility, across an entire facility, or across multiple facilities.
Benchmarks can be done between category-facility and category-facility,
or even narrower, to get a more relevant comparison.

3.4.4 Cost: Maintenance Cost per Production Cost

Definition Maintenance cost per production cost measures the maintenance cost
incurred for an asset or facility as a percentage of production cost over
a specified time period (e.g. monthly, quarterly or annually).

Spare parts + Maintenance labour +

Formula Maintenance Cost Third-party services
=
per Production Cost Production cost

Measure Percentage.

Comment This metric is a useful benchmark at plant and corporate levels. The world
class benchmark is 10% to 15%.

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Maintenance Performance Indicators | KPIs and KAIs for Maintenance Personnel

3.5 KPIs AND KAIs FOR MAINTENANCE PERSONNEL

This summary dashboard of core KPIs / KAIs is aligned with both Unilever standard roles and
Maintenance roles. Note it does not represent an exhaustive list of KPIs / KAIs, which should
always be refined based on each factory’s objectives.

Black circles indicate the role has responsibility at the plant level.

Open circles indicate the role has responsibility at each person’s area or function of
responsibility.

Unilever Standard Roles Site Engineering Engineering Engineering Engineering Multi/Single

Engineering Supervisor Supervisor Specialist Ancillary Skill
Manager Technician
Maintenance Roles Maintenance Maintenance Project Maintenance Spare Parts Maintenance
Manager Supervisor Engineer Planner Storekeeper Technician

Performance Indicator

SAFETY:

TRFR

Safety Behaviour
Observation

ENVIRONMENT:

CO2 from Energy

Energy

Hazardous Waste

Non-hazardous Waste

Total Water

Total Chemical Oxygen

Demand

COST:

Maintenance Cost

% Reactive
Maintenance Cost

% Preventive
Maintenance Cost

% Predictive
Maintenance Cost

% Maintenance
Shutdown Cost

% Overtime
Maintenance Cost

67
Maintenance Performance Indicators | KPIs and KAIs for Maintenance Personnel

Unilever Standard Roles Site Engineering Engineering Engineering Engineering Multi/Single

Engineering Supervisor Supervisor Specialist Ancillary Skill
Manager Technician
Maintenance Roles Maintenance Maintenance Project Maintenance Spare Parts Maintenance
Manager Supervisor Engineer Planner Storekeeper Technician

Performance Indicator

RELIABILITY:

Mean Time Between

Failures

MAINTAINABILITY:

Mean Time to
Repair/replace

MAINTENANCE
DOWNTIME:

# of Breakdowns

% Breakdown

% Reactive
Maintenance Hrs

% Preventive
Maintenance Hrs

% Predictive
Maintenance Hrs

% Planned Work

% Unplanned Work

MAINTENANCE TASK:

Amount of Planned Work

Responsiveness of
Planning

Quality of Planning

Quality of Scheduling

Schedule Compliance

Work Order Completion

Work Order Closure

MORALE:

Absenteeism

LEARNING:

Skill Compliance

68
Maintenance Performance Indicators | KPIs and KAIs for Maintenance Personnel

Unilever Standard Roles Site Engineering Engineering Engineering Engineering Multi/Single

Engineering Supervisor Supervisor Specialist Ancillary Skill
Manager Technician
Maintenance Roles Maintenance Maintenance Project Maintenance Spare Parts Maintenance
Manager Supervisor Engineer Planner Storekeeper Technician

Performance Indicator

STOREROOM:

Month End Inventory

Value

Service Level %

# of Stock Turns

Inventory Accuracy %

Slow Moving Parts %

% Vendor On-time
Delivery

% Vendor Accurate
Delivery

MT to Order
Emergency Parts

MT to Order Normal
Parts

PROJECT:

% Project Cost

% Project OEE

% Project Start-up

Project Life Cycle Cost

# of Maintenance
Prevention Info Issued

Checklist Implement &

Increase

# of Change Requests

# of Problems Found
in Steps

% of Problems Solved

Total Number of
27 18 13 17 12 14
KPIs / KAIs

Note In addition to the standard roles, some Unilever factories have industrial safety engineer
and NPI procurement clerk roles. These roles were not included in the mapping above
because they are not considered to be standard Maintenance roles. Where they exist,
this dashboard should be used to identify the relevant KPIs / KAIs for each role.

69
 4 MAINTENANCE CONTROL

4.1 MAINTENANCE MANAGEMENT SYSTEM .......................................... 71

4.1.1 Maintenance Control Process ............................................................... 72
4.1.2 Maintenance Management System Process .............................................. 73

4.2 WORK ORDER SYSTEM ...................................................................... 73

4.2.1 Tagging / De-tagging .......................................................................... 73
4.2.2 Emergency Work Orders ...................................................................... 76
4.2.3 Preventive Maintenance and Predictive Maintenance .................................. 78

4.3 MAINTENANCE CONTROL ................................................................. 79

4.3.1 Work Control .................................................................................... 79
4.3.2 Plant Condition Control ....................................................................... 83
4.3.3 Cost Control ..................................................................................... 88

4.4 ROLES OF MAINTENANCE MANAGER AND PLANNER .................... 91

100%

80%

60%

40%
OTIFQ Preventive
20% Maintenance

0%
4 8 12 16 20 24 28 32 36 40 44 48 52
OTIFQ 100% 100% 100% 67% 93% 0% 100% 93% 86% 82% 70
100% 93% 95%

Week
Maintenance Control | Maintenance Management System

4 MAINTENANCE CONTROL
Introduction
A maintenance system can be viewed as a simple input / output system. The output of the
system is to maximise overall equipment effectiveness (OEE), so all equipment is reliable and
well-configured to achieve the planned operation of the plant. At the same time, a continuous
feedback control is established in order to meet cost and key performance indicator (KPI) targets.

Illustration

Maintenance System

Other resources Other resources

Technical documents: Tools: mechanical and
manuals, drawings, etc. electrical equipment,
computerised systems, etc. KPI actual:
Budget cost: OEE
Labour MTBF
Spare parts MTTR
Planning &
Assets
Scheduling

Industrial
Engineering

4.1 MAINTENANCE MANAGEMENT SYSTEM

A maintenance system has a set of activities that make it functional. A maintenance management
system refers to the set of activities, tools and procedures that are used to coordinate and
allocate maintenance resources. The primary functions in a maintenance management system
are planning, scheduling, execution and control.

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Maintenance Control | Maintenance Management System

Illustration
Maintenance Management System

Function Description

Planning Planning is the set of activities where maintenance management plans the resource
requirements for a specified time period based on the characteristics of assets, the
required production volume, and the expected maintenance targets.

Scheduling Scheduling is the activity where the maintenance planner and the production team
jointly schedule maintenance jobs. The objective is to maximise the performance of the
maintenance execution team.

Execution Execution is the set of tasks that must be completed in order to fulfil the maintenance
schedule.

Control Control is the function that measures the system’s performance. The objective is to
ensure the maintenance system achieves its targets, which should be aligned with the
organisational objectives. In addition to OEE, system objectives include cost, quality and
equipment availability such as mean time between failures (MTBF) and mean time to
repair (MTTR).

4.1.1 Maintenance Control Process

Maintenance control is one of the management functions. An effective maintenance control
process improves equipment reliability and assists in the optimal utilisation of resources. It
focuses on establishing performance standards, analysing actual versus standard performance,
and taking corrective actions.

Illustration

Maintenance Control Process

Target Setting

Planning Performance
Measurement

YES
Scheduling OK?

NO

Execution Plan Correction

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Maintenance Control | Work Order System

4.1.2 Maintenance Management System Process

In summary, the whole maintenance management system can be represented as follows:

Illustration

Maintenance Management System Process

Production Facilities Performance Product

Measurement

Maintenance Execution

Standard Maintenance
Maintenance Resources Schedule
Procedure

Drawings
Manuals Maintenance Production
Components data sheets Plan Schedule
Historical data

4.2 WORK ORDER SYSTEM

An essential part of maintenance control is the work order (WO) system that is used for planning,
scheduling, executing and controlling maintenance work. The WO system consists of necessary
documents and well-defined process flows of the WOs. The documents provide the means for
planning and collecting the necessary information for monitoring and reporting maintenance
work.

The types of WOs are:

• Maintenance request, which includes tagging / de-tagging and emergency work orders (EWO).

• Preventive maintenance and predictive maintenance.

4.2.1 Tagging / De-tagging

A maintenance request to fix an abnormality in a piece of equipment / asset that occurred during
an operating or non-operating period can be issued as tagging. The tag can be issued by the
operator as owner of the asset or by the technician who observed the abnormality. De-tagging is
when allocated labour is assigned to close the WO.

73
Maintenance Control | Work Order System

Illustration

Work Order Interaction with Maintenance System

Other resources Other resources

Technical documents: Tools: mechanical and
manuals, drawings, etc. electrical equipment,
computerised systems, etc. KPI actual:
Budget cost: OEE
Labour MTBF
Spare parts WO MTTR
Planning &
Assets
Scheduling

Industrial
Engineering

There are three types of tags:

• Safety, Health and Environment (SHE) Tag - This tag can be closed either by an operator
or a technician depending on the skill level required to complete the maintenance task.

• Maintenance Tag – This tag can only be closed by a technician because technical skills are
required to complete the maintenance task.

• Operator Tag – This tag can only be closed by the first-line manager responsible for that
production line.

Illustration

Tags System

Safety, Health and

Environment - SHE Tag Maintenance Tag Operator Tag

Abnormality Tag Tag # Abnormality Tag Tag # Abnormality Tag Tag #

SAFETY, HEALTH & ENVIRONMENT Name MAINTENANCE Name OPERATOR Name
Date Date Date
Area / Line Priority A B C AM Step 1 2 3 4 5 6 7 AM Step 1 2 3 4 5 6 7
Machine Shift 1 2 3 Line Priority A B C Line Priority A B C
Machine Shift 1 2 3 Machine Shift 1 2 3
Safety and Health Environment

The work/machine must be stopped until unsafe condition is eliminated Abnormality Related to: Abnormality Related to:
Missing Quality defects Missing Quality defects
Broken Fasteners Broken Fasteners
What is it wrong (objects) Unsafe conditions
Worn out Transmission system Worn out Transmission system
Pedestrain / vehicles traffic Inadequate Backlash Pneumatic system Backlash Pneumatic system
Machine Missing Torn Hydraulic system Torn Hydraulic system
Building / infrastructure In poor conditions / damaged Obsolete Lubrication system Obsolete Lubrication system
Tools Not clean / not orderly Burned Electrical / Instrumentation Burned Electrical / Instrumentation
Emergency equipment Inadequate storage Loose or missing contact Insulation / Sealing Loose or missing contact Insulation / Sealing
Protective devices Restricted / confined space Abnormal noise Source of Contamination Abnormal noise Source of Contamination
Chemical issues Dust and dirt Hard To Access area Dust and dirt Hard To Access area
Electrical issues Leaking Corrosion / paint Leaking Corrosion / paint
Other Smashed / caught in Visual aids Smashed / caught in Visual aids
Other Other Other Other
Detailed abnormality description:
Detailed abnormality description: Detailed abnormality description:

Implemented solution: Implemented solution: Implemented solution:

Closing date: Closed by: Closing date: Closed by: Closing date: Closed by:
1st copy: Abnormality location 3rd copy: Tracking location 1st copy: Abnormality location 3rd copy: Tracking location 1st copy: Abnormality location

2nd copy: Maintenance Planner 2nd copy: Maintenance Planner 2nd copy: Tracking location

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Maintenance Control | Work Order System

Illustration

Process Flow for Tagging / De-tagging

Operator or technician
observes abnormality

Standard data for abnormality:

Who? (person and department)
Operator or technician Respected asset (part/component level if
raises notification it is possible to identify)
(manual tag or CMMS) Date and time
Type of tag (SHE, maintenance, operator)
Priority (refer to priority table)
Description of abnormality
No Maintenance
planner: Approve?

Yes Standard data to create WO:

Allocated labour resource (operator,
Maintenance planner technician or raise PR for external resource)
assigns tag based on Allocated spare part (reservation of stock or
priority raise PR for non-stock)
Allocated time
Allocated cost
Allocated tools and machining machine
Maintenance planner Engineering data-drawing-document related
creates WO and plan

Engineering data-drawing-document (historical data or

machine ledger, manual book, drawing of machine or
Execute WO by components, layout and standard maintenance
allocated labour
procedures). Modification to data-drawing-document
can be proposed as per gap found.

Standard data to closed WO:

Closed WO by Actual labour (number, ID)
allocated labour Actual spare part consumption
Actual time to repair or replace

Conforming closed WO Standard data to conforming closed WO:

by authorised person Implementation validation (who and when)
Approve or reject the modification of
engineering data-drawing-document
Data collected to be
evaluated further
(manual asset history
file or CMMS)

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Maintenance Control | Work Order System

4.2.2 Emergency Work Orders

EWOs, or breakdowns maintenance, are used to repair a reported failure of a piece of
equipment / asset as soon as possible. Maintenance schedules are interrupted to repair
emergency breakdowns. The EWO process can be used to perform root cause analysis on the
failure and apply effective countermeasures to reduce or eliminate the root causes.

Guidelines should be established for setting EWO priorities such as:

0 – Emergency or SHE Tag.

1 – Urgent.

2 – Serious.

3 – Non-critical Maintenance on Production Equipment.

4 – Non-critical Maintenance on Non-production Equipment.

Illustration

Emergency Work Order Form

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Maintenance Control | Work Order System

Illustration

Process Flow for Emergency Work Orders

Standard data for breakdown (BD) notification:

Breakdown: Person who issued the BD (name and department)
Operator raises Respected asset (part/component level)
notification Respected day, time and shift
Type of BD (mechanical or electrical)
Description of BD (5W+1H)
Possible root cause
Description of abnormality
IMMEDIATELY dispatch
maintenance crew.
WO follows later.

Engineering data-drawing-document (historical data or

machine ledger, manual book, drawing of machine or
components, layout and standard maintenance
Technician makes procedures). Modification to data-drawing-document
analysis can be proposed as per gap found.

Standard data to close WO:

Detail time to repair
Authorised Type of BD (mechanical and electrical)
No maintenance Component replacement, component repaired or setting
evaluates quality of
and adjustment
analysis. OK?
Technician name and ID
5W analysis
Yes Sketch, picture, video of 5W
Root cause
BD category (external factors, insufficient skills, design
Action
weakness, insufficient maintenance, operating conditions
not maintained, basic conditions not maintained
Countermeasures against root causes
(what, who, when)
EWO closure
Preventive actions (what, who, when)
Analysis performed (who, when)

Conforming closed EWO Standard data to conforming closed EWO:

by authorised person Implementation validation (who, when)
Approve or reject modification of
engineering data-drawing-document

Authorised
maintenance evaluates Standard data to conforming closed EWO:
possible replication Possible replication actions (what, where, who, when)
Planner provides spare part and programmes
replication (what, where, who, when)
All data collected to be Raises notification by authorised maintenance
evaluated further Modification of engineering data-drawing-document
(manual asset history
file or CMMS)

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Maintenance Control | Work Order System

4.2.3 Preventive Maintenance and Predictive Maintenance

Preventive maintenance is a strategy to perform maintenance on equipment / assets at
predetermined intervals. The frequency can be either time based or cycle based. An example is
“change belts of case packing machine each two months or 1,000 operating hours”.

The primary objectives are to:

• Maximise reliability and availability at an economical cost.

• Eliminate unplanned maintenance activities.

• Achieve zero breakdowns and process failure losses.

Predictive maintenance is the application of modern analytical techniques to monitor and

predict imminent failures of equipment / assets. It uses changes in the actual operating
conditions of equipment / assets and systems to optimise total plant operations. Therefore, the
frequency of execution is condition based. A simple example of basic predictive maintenance is
“check belt tension each 1,000 operating hours to identify if (and when) it should be changed”.

The primary objectives are to:

• Maximise the intervals between repairs of equipment / assets.

• Optimise the availability of equipment / assets.

• Significantly reduce the cost of maintenance and excessive depreciation.

An effective programme of preventive and predictive maintenance helps minimise the risks of
major business interruptions from catastrophic failures of equipment / assets and systems.

Illustration

Process Flow for Preventive Maintenance

Define maintenance strategy Plan building Scheduling-work order definition

Breakdowns Frequency Labour resource
TBM Tasks Spare part (in stock or out of stock)
CBM Resources need per task Tools
SMP Cost

Documents
Checklist of maintenance tasks
Checklist of tools
W/O closure Checklist of spare parts
Access engineering data, if required,
Actual labour (number and name)
to review drawing(s)
Final collected Actual spare part consumption
data evaluation and Actual time to repair / replace
CMMS update Result of observation based on checklist
Modify engineering data, if
required, for further approval W/O execution

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Maintenance Control | Maintenance Control

4.3 MAINTENANCE CONTROL

Feedback and control are important functions that are used to improve maintenance system
performance in three areas:

• Work control.

• Plant condition control.

• Cost control.

4.3.1 Work Control

Work control requires monitoring the current work status and the completed work to determine
if work was done according to on time, in full and quality (OTIFQ) standards. This assumes the
maintenance control system includes standards that were assigned in advance of performing
actual work.

A set of reports are generated to help monitor work control. Maintenance work should be
categorised based on if it was performed regularly in-house, required overtime, or was
outsourced. A report that shows technicians’ actual performance against standard and their
productivity helps in monitoring workforce performance.

The backlog reports are essential for work control. The weekly backlog report should indicate the
backlog by technician and what caused the backlog. A healthy backlog should be maintained as
excessive or too little backlog requires corrective actions such as:

• Schedule cost effective overtime.

• Transfer technicians from other departments.

• Decrease or increase contracted maintenance.

• Downsize or expand the maintenance workforce.

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Maintenance Control | Maintenance Control

Illustration
Daily, weekly and monthly maintenance reports should include the key work control performance
indicators (PIs).

PI 1 Issued and Solved Tag

Can be filtered by time, functional location and person in charge (PIC).

Total Tags by Type — Cumulative

2000 100%

1600 90%

1200 80%

800 70%

400 60%

0 50%
Prior year -1 Prior year Current year

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov

Maintenance tags open - cumulative Operator tags open - cumulative

Total SHE tags open - cumulative Total tags completion rate - cumulative

PI 2 Tag Register Example

Can be filtered by time, functional location and PIC.

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Maintenance Control | Maintenance Control

PI 3 EWO Performance
Can be filtered by time, functional location and PIC.

EWO Performance

40 100%

35
90%
30

25 80%

20

15 70%

10
60%
5

0 50%
Prior year Current year

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov

# of EWO completed # of EWO expected to be completed EWO completion rate

PI 4 Countermeasures Against Root Cause Progress

Can be filtered by time, functional location and PIC.

Countermeasures Against Root Causes Progress

0
AM PM FI PD
# action # Closed Action

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Maintenance Control | Maintenance Control

PI 5 Preventive Actions Progress

Can be filtered by time, functional location and PIC.

Preventive Actions Progress

0
AM PM FI PD
# action # Closed Action

PI 6 OTIFQ Preventive Maintenance

OTIFQ Preventive Maintenance

100%

80%

60%

40%

20%

0%
4 8 12 16 20 24 28 32 36 40 44 48 52
OTIFQ 100% 100% 100% 67% 93% 0% 100% 93% 86% 82% 100% 93% 95%

Week

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Maintenance Control | Maintenance Control

PI 7 Overdue Preventive Maintenance

Overdue Preventive Maintenance

100%

80%

60%

40%

20%

0%
4 8 12 16 20 24 28 32 36 40 44 48 52
Overdue 0% 0% 0% 23% 8% 100% 0% 7% 13% 18% 0% 8% 5%

4.3.2 Plant Condition Control

Plant condition control requires an effective system for recording breakdowns and process
failures for all defined critical assets (equipment, components / parts) in the plant. This
information is obtained from the WO and asset history file. The asset history file must include
what the problem was, where it occurred, when it occurred, what caused the problem, the
resulting effect, corrective action taken, resources used, how long the repair took, and comments
concerning these activities.

A key activity in plant condition control is to review planned maintenance versus breakdowns or
failures recorded. The review can be done in the preventive maintenance calendar to have proper
visibility of the affected part, root cause and breakdown frequency. In case it is related to
insufficient maintenance, further action may be required to review standard maintenance
procedures (SMP) or frequency of maintenance.

83
Maintenance Control | Maintenance Control

Illustration
Plant condition control report to review maintenance versus breakdowns / failures in the
preventive maintenance calendar:

84
Maintenance Control | Maintenance Control

Illustration
Daily, weekly and monthly maintenance reports should include the key plant condition control PIs.

PI 1 Number of Failures (NOF) & MTBF, MTTR, and OEE

OEE and Main PM Related Losses Evolution

14% 70.0%

12% 60.0%

10% 50.0%

8% 40.0%

6% 30.0%

4% 20.0%

2% 10.0%

0% 0.0%
Prior year -1 Prior year Current year

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov
Breakdown loss - % Maintenance time loss - % OEE - %

# of Breakdowns and MTBF

60 12000

50 10000

40 8000

30 6000

20 4000

10 2000

0 0
Prior year -1 Prior year Current year

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov
# Breakdowns - External factors (FI) # Breakdowns - Weak components (FI)
# Breakdowns - Lack of maintenance (PM) # Breakdowns - Insufficient skills (PD)
# Breakdowns - Lack of basic conditions (AM) # Breakdowns - Lack of observing operating
Mean Time Between Failure - MTBF conditions (PD)

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Maintenance Control | Maintenance Control

Mean Time To Repair (MTTR) and Mean Time To replace (MTTr)

140

120

100

80

60

40

20

0
Prior year -1 Prior year Current year

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov
Initial waiting time - Technician Diagnostics time Waiting time spare parts
Repair and/or replacement time Test / Start-up time Mean Time to Repair - MTTR
Mean Time to replace - MTTr

PI 2 Breakdown Category
Can be filtered by time, functional location, PIC and type of cost.

Breakdown Category

0
External Insufficient Design Insufficient Operation Basic
factors skill weakness maintenance conditions not condition
maintained not maintained

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Maintenance Control | Maintenance Control

PI 3 Breakdown Map
NOF by Broken Components (stratification)

NOF by Broken Components

3 Sum of design weakness

Sum of basic condition not
maintained
2 Sum of operation conditions
not maintenaned
Sum of inssufficient skill
1
Sum of inssufficient
maintenance
Sum of external factors
0
Bearing roll Belt Bevel Temperature Timing
688 ZZ emptying gear sensor belt

PI 4 Percentage Breakdown Maintenance and Preventive Maintenance

Technician Time Evolution

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Line 1 Line 2 Line 3 Line 4 Line 5 Line 6 Line 7
Breakdown Maintenance % of Total Time Based Maintenance (TBM) % of Total
Condition Based Maintenance (CBM) % of Total Improvement Projects % of Total
Training % of Total EEM/EPM projects % of Total
Technician Time - Others % of Total

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Maintenance Control | Maintenance Control

PI 5 Pending Review Engineering Data-Drawing-Document

Pending Review Engineering Data-Drawing-Document

25%

20%

15%

10%

5%

0%
4 8 12 16 20 24 28 32 36 40 44 48 52
Overdue 8% 10% 2% 2% 15% 10% 6% 0% 4% 8% 15% 2% 0%

4.3.3 Cost Control

Maintenance costs consist of spare part costs, maintenance labour costs, and third-party
services. Almost all information about costs is available on the WO. A summary of maintenance
costs by work category must be issued monthly. Reducing the number of unplanned maintenance
WOs would be a priority for reducing costs. Other actions include:

• Use alternative spare parts with more competitive life-cycle costs.

• Reduce time to repair or time to replace.

• Revise maintenance policies and procedures, particularly to reduce maintenance crew size
and methods.

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Maintenance Control | Maintenance Control

Illustration
Daily, weekly and monthly maintenance reports should include the key cost control PIs.

PI 1 Cost of De-tagging Activity

Can be filtered by time, functional location, PIC and type of cost.

Cost of De-tagging Activity

12 80

70
10
60
8
50

6 40

30
4
20
2
10

0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cost (per month), k€ 10 6 1 13 11 9 6 6 5 4 3 1
Cost (cumulative), k€ 10 16 17 30 40 49 56 62 67 71 74 75

PI 2 Cost of EWO
Can be filtered by time, functional location, PIC and type of cost.

Cost of EWO

60 300

50 250

40 200

30 150

20 100

10 50

0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cost (per month), k€ 6 23 0 35 44 58 44 17 12 6 6 0
Cost (cumulative), k€ 6 29 29 64 107 165 209 226 238 244 250 250

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Maintenance Control | Maintenance Control

PI 3 Cost of Preventive Maintenance

Can be filtered by time, functional location, PIC and type of cost.

Cost of Preventive Maintenance

1 400 000 €

1 200 000 €

1 120 071
1 000 000 €
1 016 061
800 000 €

600 000 €

400 000 €
373 866
200 000 €

0€
2013 2014 2015

PI 4 R&M Cost as % of Production Cost

R&M Cost as % of Production Cost

350 14.0%

300 12.0%

250 10.0%

200 8.0%

150 6.0%

100 4.0%

50 2.0%

0 0.0%
Prior year -1 Prior year Current year

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov

R&M Spare parts cost R&M Labour cost

R&M Third party cost R&M Total as % of Production cost

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Maintenance Control | Roles of Maintenance Manager and Planner

Breakdown Cost & Planned Maintenance Cost (mio IDR)

45,000
40,631
40,000

35,000
29,934 Planned
30,000 Mtn Cost
26,761
Breakdown
25,000 Cost
20,000 Total
Maintenance
Cost
15,000

10,000
13,870

5,000

-
Prior year Current year

Jan-Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

4.4 ROLES OF MAINTENANCE MANAGER AND

PLANNER
Roles of the maintenance manager and maintenance planner include:

• Maintain active contact with personnel both within and outside the department.

• Gather and interpret reports on the performance and efficient utilisation of resources
(i.e. spare parts, man-hours and time of job performed).

• Use information to plan constructive actions that will improve maintenance control.

Maintenance managers must be able to recognise performance problems and opportunities and
then take appropriate actions. They must make decisions that will extend MTBF, decrease MTTR,
and achieve an effective maintenance cost.

Maintenance planners must have accurate maintenance histories to properly plan repairs. At a
minimum, they must know the standard MTTR for every recurring repair, rebuild and maintenance
of critical plant machinery, equipment and systems. In addition, planners must know the specific
tools, repair parts, auxiliary equipment and craftsmen skills required for each maintenance task.
This information, along with proper repair sequence, is an absolute requirement of a viable repair
plan. This type of information requires a comprehensive maintenance database that compiles
actual MTTR, standard repair procedures, and other information required for proper maintenance
planning.

Many plants do not have full-time maintenance planners, or they have full-time planners who
lack the required knowledge and skills for the role. It is imperative to provide training, so every
planner has the skills necessary to properly plan repair and maintenance tasks.

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Maintenance Control | Roles of Maintenance Manager and Planner

Effective control is important to organisational learning. Procedures that require follow-up,

review, monitoring and corrective actions make continuous improvement a genuine part of the
organisational culture. It encourages everyone involved in the maintenance process to be
responsible for their performance efforts and accomplishments.

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5 PLANNING AND SCHEDULING

5.1 EFFECTIVE PLANNING AND SCHEDULING ...................................... 95

5.2 BASICS OF WORK PLANNING ........................................................... 96

5.2.1 Components of the Work Package ........................................................ 97

5.3 SIX MAINTENANCE PLANNING PRINCIPLES .................................. 97

5.3.1 Principle 1: Establish Different Departments ........................................... 98
5.3.2 Principle 2: Concentrate on Planned Maintenance .................................... 98
5.3.3 Principle 3: Create Component Level Minifiles ......................................... 99
5.3.4 Principle 4: Leverage Expertise of Planners ............................................ 100
5.3.5 Principle 5: Consider the Skill Sets of Technicians .................................... 100
5.3.6 Principle 6: Use Work Sampling to Measure Performance .......................... 101
5.3.7 Integrating the Six Maintenance Planning Principles ................................. 102

5.4 BASICS OF SCHEDULING .................................................................. 102

5.4.1 Advance Scheduling .......................................................................... 102

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5.5 SIX MAINTENANCE SCHEDULING PRINCIPLES .............................. 103
5.5.1 Principle 1: Identify Lowest Skill Level Required ....................................... 103
5.5.2 Principle 2: Balance Work Schedules and New Job Prioirities ...................... 104
5.5.3 Principle 3: Schedule Based on Highest Skills Available ............................. 105
5.5.4 Principle 4: Schedule 100% of Available Hours ......................................... 105
5.5.5 Principle 5: Assign Supervisors to Manage Daily Schedules ........................ 106
5.5.6 Principle 6: Measure Schedule Compliance ............................................. 107
5.5.7 Integrating the Six Maintenance Scheduling Principles .............................. 108

5.6 FORMS AND OTHER RESOURCES .................................................... 109

5.6.1 Component Level Files ....................................................................... 109
5.6.2 Work Hours Availability Forecast ........................................................... 110
5.6.3 Advance Scheduling Form ................................................................... 111
5.6.4 Balance Forecast and Scheduled Work Hours .......................................... 112
5.6.5 Staging Spare Parts and Tools .............................................................. 113
5.6.6 Engineering Data-drawing-document .................................................... 116

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Planning and Scheduling | Effective Planning and Scheduling

5 PLANNING AND SCHEDULING

Introduction
Many factories do not have fully developed planning and scheduling capabilities. Work still gets
done but it is done at a high cost. Without a properly developed and defined planning and
scheduling function, maintenance operates in a reactive mode. Work quality, equipment / asset
effectiveness, and maintenance productivity are not at their optimal levels. This is partially due to
excessive non-value-added activities, which occur during and between jobs.

Additionally, maintenance planners are not able to effectively plan for the number of maintenance
technicians that are assigned to them. Overall, maintenance costs increase due to the acquisition
and storage of unnecessary spare parts and the excess energy consumed by poorly maintained
equipment.

These issues, and others, that occur on a daily basis can be avoided by having effective work
planning and work scheduling processes in place.

5.1 EFFECTIVE PLANNING AND SCHEDULING

Work planning consists of performing research and determining the specific requirements of a
maintenance task that will be performed in the future. This includes the what, when (in terms of
frequency), where, who (in terms of specialisation) and how, since they all interface with work
scheduling. The primary mission is not just doing research but using information and bringing
together the resources that will leverage and improve productivity.

Work scheduling consists of coordinating all of the resources that are required for a maintenance
task and scheduling the task for execution within a specified time period. Executing work
scheduling requires an understanding of the availability of maintenance technicians, equipment /
assets, spare parts and speciality tools.

Establishing effective work planning and work scheduling capabilities will allow a factory to move
away from a reactive state of maintenance and improve the overall efficiency of the workforce.

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Planning and Scheduling | Basics of Work Planning

Illustration
Characteristics Without and With Planning and Scheduling Capabilities

Without Planning and Scheduling With Planning and Scheduling

Active repair time is very low with remaining Active repair time is high with an increase in
time consumed by activities such as: overall efficiency such as:

Receiving instructions and obtaining tools and Unnecessary spare parts that were being
materials. stored can be eliminated.

Travelling to and from job sites. Work order (WO) backlog can be reduced while
maintaining current staffing levels.
Co-ordination delays and idleness at the
job site. Equipment / assets can be maintained more
efficiently, which will get production back on
line in less time.
Late start and early quit times including
excessive personal time.
Time will be available to analyse failures and
take corrective actions to prevent them.
Authorised breaks.

5.2 BASICS OF WORK PLANNING

The work planning methodology is designed to increase maintenance productivity. A key objective
is to have the “right jobs that are ready to go”:

• The right jobs involves job priorities, technician schedules, and work types such as
preventive versus breakdown maintenance.

• The ready to go involves correctly identifying the work scope, considering the safety
aspects of the job and planning to reduce anticipated delays.

Maintenance management uses work planning as a tool to reduce unnecessary delays through
advance preparation. After receiving a WO (e.g. maintenance request or scheduled preventive or
predictive maintenance), the planner develops a work package as advance preparation. The work
package is nothing more than assembled information that the crew needs to execute the work.
With a well-defined package and necessary tools that are staged or reserved, the crew is ready
to go.

It must be emphasised that quality is more important than productivity. The benefits of planning
actually involve quality as well as productivity. First, planning focuses on correctly preparing
the work package, thereby facilitating quality work. Second, productivity improvement frees up
technician, supervisor and manager time to do more proactive and preventive work. This work
includes root cause analyses on reactive jobs, more attention to preventive and predictive
maintenance, and improvement activities in reliability and maintainability.

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Planning and Scheduling | Six Maintenance Planning Principles

5.2.1 Components of the Work Package

As previously discussed, work planning consists of performing research and determining the
specific requirements of a maintenance task that will be performed in the future. This includes
the what, when, where, who and how. Work planning is not so much “information central”, but
is more “coordination central.” The end goal of work planning is to have a planned maintenance
work package with “the right job that is ready to go”.

Illustration

Five Key Elements of Work Packages

Maintained asset
Asset
Component level

Man-hours required
Labour
Craft / set of skill

BOM (Bill of Material)

Spare Part
Trigger reservation / ordering

Tools and General / individual

Equipment Specific

Information
Manual book, technical drawing of
(Engineering Data- component, SMP, risk assessment
drawing-document)

At a minimum, the work package includes a job scope (considering the safety aspects), skills /
crafts required and man-hour labour estimates. The planner may also include a procedure for
doing the task and any spare parts and special tools required. Supporting information in the
engineering data drawing document is built up based on the maintained asset, which helps
technicians and supervisors execute and control the quality of work.

5.3 SIX MAINTENANCE PLANNING PRINCIPLES

Richard (Doc) Palmer published six maintenance planning principles in his book Maintenance
Planning and Scheduling Handbook. These principles have been widely adopted by maintenance
organisations across a variety of industries. As Unilever factories continuously improve their
maintenance planning function, these principles can serve as guidelines for properly developed
planning processes.

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Planning and Scheduling | Six Maintenance Planning Principles

When all six of these principles are integrated and applied correctly, maintenance planning can
achieve higher levels of overall productivity — both within and across factories. For example, a
Unilever factory identifies a maintenance issue with a specific bearing, which has had several
failures over the past two years. These failures resulted from a lack of lubrication because of
jamming in the oil pump filter. There are hundreds of these bearings in use globally across
multiple factories. Factory management notifies other factories of the issue and solution by
issuing Maintenance Prevention Info and/or PM Best Practice, so they can address it before
more failures occur. As you can see, critical information and data can be shared not only within
a factory but across multiple Unilever factories.

5.3.1 Principle 1: Establish Different Departments

Principle 1

Establish Different Departments

Factory management should establish an organisational structure that has
maintenance technicians in a different department than maintenance planners, as
often maintenance supervisors try to play a double role. This separation helps
planners develop advanced planning skills. It also helps them focus on doing planned,
instead of reactive, maintenance.

• According to Unilever Maintenance Blueprint guidelines, technicians always report to a

maintenance supervisor while maintenance planners always report to a site maintenance
manager. This is also to avoid situations where planners are temporarily reassigned as
technicians (i.e. to a toolbox).

• The goal is to have planners plan the work to be executed while technicians execute the
work that has been planned.

5.3.2 Principle 2: Concentrate on Planned Maintenance

Principle 2

Concentrate on Planned Maintenance

Maintenance planners should concentrate on planned maintenance activities, which
consist of preventive maintenance and predictive maintenance. Planners should always
have a WO backlog that has been planned and scheduled and is ready to be executed.
This backlog allows technicians to mainly work on planned maintenance WOs.

• Maintenance supervisors handle the emergency work orders (EWOs) and coordinate their
execution with the planned maintenance activities.

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Planning and Scheduling | Six Maintenance Planning Principles

• Future productivity can be increased by providing and using feedback based on WOs that
were completed:

After the completion of every WO, technicians should provide feedback to planners
such as any additional spare parts or tools that were needed to execute the WO.
Planners should analyse the feedback and use it to update and improve work plans.
This will increase the accuracy of work plans — especially for repetitive WOs.
By applying at least six months of feedback to improvement efforts, planners can
increase the accuracy of their work plan estimates for resources and cost. The
six-month benchmark can be used as a guideline to develop a feedback process.

Illustration

The continuous improvement cycle model can be applied to improve the quality of a work plan.
After completing a WO, the specific learnings are provided as feedback. This feedback is then
used to improve the work plan for future work.

Continuous Improvement Cycle Model

Complete a WO

Focus on Planned
Plan Future Work Learn On-the-Job
Maintenance

Provide Feedback

5.3.3 Principle 3: Create Component Level Minifiles

Principle 3

Create Component Level Minifiles

Maintenance planners should create and maintain a secure minifile system that is
organised by equipment / asset numbers.

• Minifiles should contain historical data on all defined critical assets (equipment,
components, parts) in the factory in addition to feedback provided by maintenance
technicians on previously completed WOs.

• Historical data should contain WO histories and equipment / asset databases. Planners
should leverage the analysis of asset history functionality from the CMMS, which shows

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Planning and Scheduling | Six Maintenance Planning Principles

breakdown trends, provides information for estimating future breakdowns and provides
repair cost data for individual components over any time period.

• Historical cost data can be used to make more informed decisions such as whether to
repair, replace or hire a piece of equipment / asset.

• Maintenance supervisors and project engineers can also access the minifiles to get data
they need for their projects.

5.3.4 Principle 4: Leverage Expertise of Planners

Principle 4

Leverage Expertise of Planners

Maintenance planners should develop work plan estimates using their personal
knowledge and expertise. By using their own experiences, along with data and
information from the component level files, planners can develop work plans that
minimise work delays, quality issues and safety violations.

• Experienced maintenance technicians should be placed in maintenance planner roles

whenever possible. Typically, these skilled technicians already know many aspects of work
planning techniques.

• Key best practices include:

Select which technicians will be promoted to planner roles from a pool of the very best
and most experienced technicians.
Anticipate and plan for some level of productivity loss for the first few months after an
experienced technician moves into a planner role.

• Planners should have additional on-the-job or course training that includes specialised
skills such as how to apply statistical techniques to data analysis.

• The outcome choice is whether to have good execution of an excellent work plan or
excellent execution of the wrong work plan.

5.3.5 Principle 5: Consider the Skill Sets of Technicians

Principle 5

Consider the Skill Sets of Technicians

Maintenance planners should consider the existing skill sets of maintenance
technicians when deciding the optimal level of detail to include in work plans. The
decision is whether to provide a high level of detail in plans that require minimal skills
or to provide a lower level of detail in plans that require more advanced skills.

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Planning and Scheduling | Six Maintenance Planning Principles

• Key best practices to developing optimal work plans include:

Planners should develop work plans that have a minimal level of detail.
Planners should develop standard work plans when jobs have procedures or
sequences that are not easy for technicians to remember.

• Work plans could be used to try to control the technicians. Alternatively, they could be
used to delegate some decisions to technicians who have the knowledge and expertise
required for the assigned repair or replacement.

5.3.6 Principle 6: Use Work Sampling to Measure

5.3.6 Performance

Principle 6

Use Work Sampling to Measure Performance

Use work sampling to measure what percentage of time maintenance technicians
spend doing productive work (i.e. at work, using tools, in front of jobs). This active
repair time is the primary measure of workforce efficiency and planning and
scheduling effectiveness.

• Active repair time does not include time spent getting work assignments, spare parts,
tools and instructions, travelling to and from tasks / jobs, break time, etc. — even though
these are necessary. The best in class target is 65% for active repair time as a percentage
of total hours worked.

• Work sampling of active repair time provides a measure of how much work planning is
contributing to workforce efficiency. However, what is actually important is an analysis of
the delays from non-value-added activities (e.g. time spent waiting for assignments, parts,
tools and instructions):

Conducting separate sampling studies over time will reveal if time spent on
non-value-added activities is going up or down.
These results will indicate whether work planning is having the desired effect of
minimising delays from these activities.
Measuring technicians’ performance tells more about the work planning function
than the technicians themselves.

• Delays are not simply part of the job, and they should be minimised:

Planned work minimises delays that occur when executing jobs.

Scheduled work minimises delays that occur between jobs.

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Planning and Scheduling | Basics of Scheduling

5.3.7 Integrating the Six Maintenance Planning Principles

Maintenance planning effectively helps improve labour productivity exactly because there is a
lack of understanding of the current level of active repair time. Measuring it per principle 6 gives
an overall indication of how well the other principles have been implemented and accepted.
Principles 1 through 5 must be in place before maintenance work planning can be successful.

Implementing all of the planning principles will result in significantly more time to do
value-added work. However, this means that maintenance supervisors will need to identify and
actually schedule more value-added work.

Obviously, maintenance management also needs to consider how scheduling planned

maintenance activities fit in the overall planning picture. Management needs to develop a
scheduling methodology that will take advantage of the opportunities for more value-added work.

5.4 BASICS OF SCHEDULING

The goal of planning is to prepare planned maintenance jobs in a way that will increase labour
productivity. The goal of scheduling is to allocate the backlog of planned maintenance jobs to
maintenance technicians in a way that maximises utilisation of available technician work hours.
Therefore, scheduling forms an integral part of planning and is necessary for achieving
maintenance improvements.

The basics of scheduling are centred on assigning enough work to maintenance technicians from
the priortised backlog of WOs. The objective is to fill up a forecast of the work hours available
with assigned WOs — whether it is for a day or for a week.

5.4.1 Advance Scheduling

Modern maintenance planning considers advance scheduling an intricate part of planning.
The most vital application of planning provides the necessary tools to manage how much work
maintenance crews should accomplish. This is done through advance scheduling.

Advance scheduling is actually more of an allocation of work and not a detailed schedule of exact
personnel and time assignments. It simply provides a way to determine an optimal amount of
work to allocate for completion over a specified time period. Maintenance planners might consult
with the planning team (Production) to achieve this optimum mix. Typically, the last coordination
point is W-1 of WO execution — apart from force majeure events and unexpected changes.
Afterwards, planners can decide what maintenance work should be performed and the
maintenance crew will be responsible for performing it.

To develop an advance schedule, activities are completed each day during the week before
(i.e. W -1):

• Day 1: Review weekly performance and work identification.

• Day 2: Lock down maintenance package (right job that is ready to go).

• Day 3: Schedule meetings.

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Planning and Scheduling | Six Maintenance Scheduling Principles

• Day 4: Stage parts and tools required.

• Day 5: Publish and communicate advance schedule.

Advance scheduling can help ensure sufficient proactive work, which is designed to minimise
breakdowns, is assigned along with reactive work. It can also facilitate grouping separate WOs for
the same piece of equipment / asset, so they can be scheduled for execution at the same time.

Implementing all of the planning principles and advance scheduling will result in significantly
more time to do value-added work. Maintenance management will then need to identify and
actually schedule more value-added work.

5.5 SIX MAINTENANCE SCHEDULING PRINCIPLES

As he did for the planning principles, Richard (Doc) Palmer published six maintenance scheduling
principles in his book Maintenance Planning and Scheduling Handbook. These principles have
also been widely adopted by maintenance organisations across a variety of industries. Unilever
factories, who are looking to improve their maintenance scheduling function, can use these
principles as guidelines for properly developing maintenance scheduling processes.

Effective scheduling is inherent in effective planning. Together, these principles create a

framework for successful scheduling of planned maintenance work.

The six maintenance scheduling principles focus on maximising the amount of work
maintenance crews can accomplish while providing opportunities for more value-added work.
Each principle sets guidelines on how maintenance should handle a different component of the
scheduling process.

5.5.1 Principle 1: Identify Lowest Skill Level Required

Principle 1

Identify Lowest Skill Level Required

When developing work plans, maintenance planners identify the types of skills required
to do the job correctly. They should plan the work at the lowest skill level required in
order to minimise overstaffing in terms of technicians' skills.

• When developing work plans, planners determine the type(s) of skills required to perform
the job correctly, the number of technicians required, the number of work hours for each
skill level, the total duration of the job, and if any specialised skills or special tools are
needed.

• Planners should identify the lowest skill level that can do the job correctly, so technicians
with the right skill mix can be scheduled for the job. For example:

A work plan shows two electricians are required but one of them is a helper. The job
should not be scheduled with the two most experienced electricians when that clearly
is not the required skill mix.

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Planning and Scheduling | Six Maintenance Scheduling Principles

If the two experienced electricians are scheduled for that job, it could delay scheduling
another job that requires an experienced electrician.

• Two of the most common mistakes in planning and scheduling are 1) always scheduling at
least two workers to a WO and 2) basing work hour estimates only on half- or whole-shift
increments (e.g. 6 or 12 hours).

5.5.2 Principle 2: Balance Work Schedules and New Job

Prioirities

Principle 2

Balance Work Schedules and New Job Priorities

Since advance scheduling is used to maximise technician utilisation, daily and weekly
schedules should be adhered to as closely as possible. New WOs must be priortised
based on their relative importance to factory objectives and the WO backlog in order to
avoid unnecessary disruptions of planned maintenance work.

• Daily and weekly schedules, which have been developed based on the WO backlog, should
be adhered to as closely as possible. Advance scheduling maximises the utilisation of
available technician hours and helps ensure a sufficient amount of work has been
scheduled.

• Unilever factories should have a process in place to prioritise new WOs in order to avoid
unnecessary disruptions of planned maintenance work. The prioritisation process should
play a major role in determining the WOs that are scheduled on a daily and weekly basis:

New WOs should be priortised based on their level of importance in achieving factory
objectives while considering their importance relative to WOs already in the backlog.
A guideline for setting priorities for new WOs is to assign a priority code based on the
following scale:

* 0 – Emergency.

* 1 – Urgent.

* 2 – Serious.

* 3 – Non-critical Maintenance on Production Equipment.

* 4 – Non-critical Maintenance on Nonproduction Equipment.

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Planning and Scheduling | Six Maintenance Scheduling Principles

5.5.3 Principle 3: Schedule Based on Highest Skills Available

Principle 3

Schedule Based on Highest Skills Available

Maintenance planners develop a work schedule for a single week for each
maintenance crew considering labour hours by highest skills available, job priorities,
job plan information, multiple WOs for same equipment / asset, and proactive versus
reactive WOs.

• Maintenance planners develop a one week work schedule for each maintenance crew from
the WO backlog. The planner first considers two factors: 1) the forecasted labour hours
available-to-schedule for the highest skill level within each crew and 2) the maximum
amount of work the crew can finish during the week:

Maintenance supervisors provide the forecasted labour hours available-to-schedule

by each technician’s specialty (e.g. electrical, instrumentation, mechanical) to the
planners.

• Planners also consider the following when developing the one week work schedule:

Whether a WO is for proactive or reactive work.

What the priorities are for WOs in the backlog and the job plan information.
For multiple WOs on the same piece of equipment / asset, if all of the WOs can be
scheduled together including proactive WOs.

• Remember the goal of maintenance scheduling is to accomplish more work by minimising

delays.

5.5.4 Principle 4: Schedule 100% of Available Hours

Principle 4

Schedule 100% of Available Hours

Maintenance planners should assign every labour hour that is available in the one
week schedule to a WO. By also scheduling some WOs that can be easily delayed, the
schedule can accommodate emergency and reactive WOs that have a higher priority.

• Principle 4 brings the first 4 scheduling principles together:

In Principle 1, the WO backlog is planned by the lowest skill level.

In Principle 2, the WO backlog is ordered by priority or importance of the WO.
In Principle 3, labour resources are forecasted by the highest skill level available.
In Principle 4, crews are assigned to WOs within a one week schedule.

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Planning and Scheduling | Six Maintenance Scheduling Principles

• Planners assign 100% of a crew’s forecasted available hours to WOs. For example, if a
maintenance crew is forecasted to have 1,000 labour hours available for the week, the
planner schedules 1,000 hours of work for the crew.

• Planners should include some WOs in the one week schedule that can be easily delayed in
order to accommodate new emergency and reactive WOs with higher priorities.

• Instead of completing lower priority WOs, preference can be given to emergency and
reactive WOs simply by under-utilising technicians’ skill levels. This is sometimes called
“working persons down”. In reality, the daily WOs that require completion rarely match the
exact skill composition of the maintenance workforce.

• The 100% scheduling strategy also helps everyone understand that every single
emergency delays the completion of other work.

5.5.5 Principle 5: Assign Supervisors to Manage Daily

Schedules

Principle 5

Assign Supervisors to Manage Daily Schedules

Maintenance supervisors manage the current day’s work schedule by developing a one
day schedule the day before. The schedule considers the status of WOs currently in
progress, WOs already scheduled for the week, and priorities for new WOs.
Supervisors match technicians' skills to WOs.

• Maintenance supervisors create the daily schedules and manage the maintenance
technicians and crews to complete all of the work allocated in the advance schedule for
the week.

• Supervisors are in the best position to manage daily scheduling of WOs and maintenance
technicians and crews. Supervisors can easily observe progress made on WOs, since they
are closest to the work being done. They can then make the necessary adjustments to the
daily schedules:

For a WO that is not completed within the planned time estimate, supervisors can
schedule time the next day to complete the WO.
If a WO is completed in less time than the planned estimate, supervisors can add to
the current day’s workload by scheduling EWOs, reassigning WOs that were scheduled
for the next day, or assigning WOs from the backlog.
Actual work hours can run over or under planned work hours on individual WOs by
a wide margin. However, at the end of the week, totals for actual and planned work
hours should be fairly close for all WOs combined.

• Supervisors are responsible for assessing and closing technicians’ skill gaps through
timely training interventions. Supervisors can assign specific WOs to technicians based on
their skill gaps in order to provide learning opportunities.

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Planning and Scheduling | Six Maintenance Scheduling Principles

• Supervisors manage urgent situations that happen during the week such as EWOs. EWOs
are not processed like non-emergency WOs by the maintenance planner, but are instead
managed by supervisors similar to jobs in progress.

• Supervisors can also coordinate other daily activities beyond the schedule as required.

5.5.6 Principle 6: Measure Schedule Compliance

Principle 6

Measure Schedule Compliance

Schedule compliance is a key activity indicator (KAI) that measures how well
technicians kept to the scheduled allocation of work for the week and the measurement
adherence to the week-1 schedule. Tracking and managing schedule compliance can
help maintenance management minimise delays that occur between jobs.

• A key goal of scheduling is to minimise delays that occur between jobs from
non-value-added activities:

Technicians with an insufficient amount of scheduled work may take multiple breaks
or spend excessive time starting up and shutting down their shifts.

• The schedule compliance KAI can be used to measure how well technicians kept to the
scheduled allocation of work for the week and the measurement adherence to the week-1
schedule:

Supervisors who change the daily schedule as little as possible help maximise
completion of preventive maintenance and other timely corrective work.

• The schedule compliance KAI can be used by maintenance managers and supervisors to
identify issues within the factory:

A low schedule compliance percentage may be due to simply having other higher
priority work interrupt the schedule.
A low schedule compliance percentage without a schedule interruption might indicate
problems in other areas such as the storeroom.
A low schedule compliance percentage for a single job might indicate a need to send
feedback to the maintenance planner on problem areas for that job.

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Planning and Scheduling | Six Maintenance Scheduling Principles

Example
Schedule Compliance Calculations for Three Scenarios

Scenario Scheduled Started Completed Compliance

A 1 WO 1 WO 0 WO 100% / not 0%

B 20 WOs 20 WOs 19 WOs 100% / not 95%

C 500 hours 450 hours 400 hours 90% / not 80%

Scenario A: A maintenance crew had 1 scheduled WO. They worked on it continuously all
week but did not complete it. The supervisor gave a 100% compliance score
because 0% seemed unfair given the work they completed.

Scenario B: A maintenance crew had 20 scheduled WOs, and they completed 19. The
supervisor gave a 100% compliance score, instead of 95%, because they
completed more than 90% of the scheduled WOs.

Scenario C: This scenario shows the most accurate method for measuring compliance,
but it requires very detailed data such as from a CMMS. Schedule
compliance tracks the planned work hours scheduled for the crew for the
following week’s work (500 hours). At the end of the next week, the crew
returns all work they did not start (50 hours). Maintenance calculates
schedule compliance as 90%, which is ((500 - 50) / 500) X 100.

Giving a crew credit for WOs started accomplishes several things:

• It gives a crew the benefit of any doubt and avoids giving a poorer-than-actual view of their
performance.

• It makes the score easy to calculate. Otherwise, the estimated remaining hours for jobs in
progress would have to be considered. That adjustment would be subjective.

• The objective is to encourage supervisors to work on scheduled jobs, not to have a

scientifically accurate correlation between a KAI and on-the-job performance.

Carryover hours are part of supervisors’ forecasts in determining available labour hours each
week. Work hours carried over should be monitored for any issues. For example, it is a problem if
a crew consistently carries over 100 work hours and they only have 100 available labour hours.

5.5.7 Integrating the Six Maintenance Scheduling Principles

Planning individual WOs will not significantly increase overall labour productivity. Maintenance
management must also consider maintenance scheduling as a part of the maintenance planning
strategy. Maintenance planning will be successful only if maintenance supervisors and planners
actually plan and schedule more value-added work. By applying planning and scheduling
principles, maintenance will be able to effectively and efficiently plan and execute WOs.

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Planning and Scheduling | Forms and Other Resources

Maintenance scheduling principles 1 and 2 are prerequisites for establishing effective scheduling
capabilities. Principles 3 through 5 establish scheduling processes. Principle 6 sets how
indicators are used to measure scheduling performance.

5.6 FORMS AND OTHER RESOURCES

Maintenance personnel — primarily supervisors, planners and technicians — use a variety of
forms, worksheets and other resources in performing their daily activities. Some of these are
included here to provide an overview of what is currently in use within Unilever. Factories can
tailor these resources to fit their own unique needs for work planning and scheduling.

5.6.1 Component Level Files

Planning principle 3 explains how maintenance planners keep a minifile at the component level
for all defined critical assets (equipment, components, parts) in the plant. This information is
obtained from the WO and asset history file.

When planners receive WOs for critical assets, minifiles enable them to quickly get the following
information:

• Listing of what was done on the equipment previously including work scope, work hours,
duration and cost.

• Schedules for normal checks by preventive maintenance, predictive maintenance and

operations.

• Part breakdowns and plant inventory information such as part numbers.

• Abnormal parts identified by operators or technicians.

• Engineering data, drawings and related documents.

The minifiles must be directly linked with the preventive maintenance calendar, where all this
historical data is gathered for each component of a particular machine.

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Illustration
Plant condition control report to review maintenance versus breakdowns / failures in the
preventive maintenance calendar. This report is further illustrated in Section 9.2.1 Building a
Machine Ledger.

5.6.2 Work Hours Availability Forecast

The work hours availability forecast is prepared by the maintenance supervisor. As the first step
in the advance scheduling process, supervisors assess each technician’s projected attendance
for the next week as well as the status of current jobs in progress. Supervisors then forecast
available work hours for each crew for the following week. This activity is usually done at the
beginning of the last shift for the time period already in progress.

Maintenance planners receive two things from supervisors a few hours after the last shift starts:

1. Completed work hours availability forecast worksheet by technician for the following week.

2. Any WOs that had been scheduled but will not be started during the current week. For a
paper-based system, supervisors physically hand over the WOs that technicians will not start.

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Example
Example of a completed work hours availability forecast worksheet. It has blank spaces to guide
supervisors in estimating how many man-hours each craft will have available.

Work Hours Availability Forecast

For Week: 20
Area: Oral Care-Packing Line By: Supervisor Date: May 9, 2016
Name Craft Paid Hours Leave Train Meeting Misc Carry Over Available Hours
Technician 1 Multiskilled 40 10 4.5 25.5
Technician 2 Multiskilled 40 4.5 10 25.5
Technician 3 Mechanic 40 10 5 4.5 20.5
Technician 4 Mechanic 40 5 4.5 10 20.5
Technician 5 Electrician 40 5 4.5 30.5
Technician 6 Electrician 40 5 4.5 30.5
Technician 7 Instrumentation 40 4.5 35.5
Technician 8 & Machinist 40 4.5 35.5
Technician 9 Helper 40 4.5 35.5
Total 360 20 20 40.5 0 20 259.5
Available
Craft
Man Hours Note:
Multiskilled 51
Mechanic 41
Instrumentation Note: Carry over means any work which has been physically started
& Automation 35.5 in the current period, but will not be finished and will run over into
Welder 0 the forecast period
Machinist 35.5
Electrician 61
Pipefitter 0
Helper 35.5
Total 259.5

5.6.3 Advance Scheduling Form

The advance scheduling form is prepared by the maintenance planner. To allocate WOs into the
technician availability forecast, the planner:

• Sorts the WO backlog according to technicians as required. For example, if a technician is only
responsible for a specific area of the plant, the planner only sorts WOs for that area.

• Sorts the WO backlog by priority code. The highest code is priority 1 — urgent. There are no
EWOs in the backlog because maintenance supervisors manage them as a part of their daily
activities.

• Groups WOs for the same piece of equipment / asset together. Scheduling these WOs together
is important for several reasons:

Productivity increases when technicians can move from one WO to another on the same
piece of equipment / asset. They do not have to spend time travelling or moving tools to
a new location, setting up again, or getting familiar with a different piece of equipment /
asset.

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Planning and Scheduling | Forms and Other Resources

Technicians tend to view them as a single WO that they can complete with minimal delay.
The time between WOs can seem like a logical time to take a break even if the WO only
took an hour to complete.
For WOs on production machinery / components, line operators prefer to clear several
WOs at one time. This approach improves overall uptime versus stopping the line several
times for separate WOs.

Illustration
An advance scheduling form with technicians assigned to WOs based on skills required and
estimated available man-hours. Actual man-hours will be filled in on the form during WO
execution.

5.6.4 Balance Forecast and Scheduled Work Hours

The balance forecast work hours and scheduled work hours worksheet is prepared by the.
maintenance planner. The worksheet is set up with technicians listed along with their skill sets
and available work hours for the week (from the work hours availability forecast worksheet) in the
first three columns. Each WO has a column. A column at the end keeps a running balance of each
technician’s remaining available time.

Using the prioritised backlog of WOs, the planner assigns the required work hours to
technician(s) for each WO based on the skill sets required per the WO and technicians’ available
time. The planner continues to assign WOs until the balance of technicians’ time available
reaches zero or all of the backlogged WOs have been assigned, whichever occurs first.

The completed worksheet is the work schedule for the week.

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Planning and Scheduling | Forms and Other Resources

Illustration
A balance forecast work hours and scheduled work hours worksheet with priortised WOs
assigned to technicians.

Balance Forecast Workhours and Scheduled Workhours

For Week:20 By: Supervisor
Date: May 9, 2016

Forecast WO Number
Name Craft Available #120 #121 #122 #123 #124 #125 #126 #127 #128 #129 #130 Balance
Work hours
Technician 1 Multiskilled 25.5 4.5 7.5 7.5 3 3 0
Technician 2 Multiskilled 25.5 7.5 3 7.5 7.5 0
4 4 1.5 1.5 7
Technician 3 Mechanic 20.5 2.5
Technician 4 Mechanic 20.5 20.5
Technician 5 Electrician 30.5 30.5
Technician 6 Electrician 30.5 30.5
Technician 7 Instrumentation 35.5 35.5
& Automation
Technician 8 Machinist 35.5 2 33.5
Technician 9 Helper 35.5 35.5
259.5 188.5

Subtract job work hours from available

manhours until balance reaches zero for
each line or backlog runs out

5.6.5 Staging Spare Parts and Tools

Staging is moving spare parts and tools from their storage locations to a designated area where
technicians can quickly pick them up before starting their WOs for the day. Staging especially
reduces the time technicians spend going to and from the storeroom when working on multiple
WOs.

The goals are to have parts and tools ready for work and to eliminate inefficiencies from
technicians having to wait in line to check out special tools. Some considerations for staging
include the following:

Consideration Description

Where to Stage Selecting staging locations depends on security and technician accessibility considerations
at each factory. Options include:
Central staging area.
Scattered staging areas.
Staging directly at the work site.

Who Should Stage Maintenance planners, along with assistance from spare parts storekeepers, are typically
responsible for staging.

Process of Staging After the week’s work schedule is completed, the staging person reviews the scheduled WOs
to determine what parts and tools need to be staged. The stager then collects the items
from the storeroom and delivers them to the staging area(s).

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Planning and Scheduling | Forms and Other Resources

There are two forms that technicians should fill out after completing a WO in order to provide
feedback to the planner: checklist of tools and checklist of spare parts. Checklists should
consider the type of data that is needed for analysis.

Illustration
A checklist technicians use for tools.

Checklist of Tools
Revisi 0
PT. Unilever Indonesia. Tbk R.[Link]
Line Number Time for Week:
20

Tools & Spare Part Available

Unit/Component Remark
Type Item Yes No
Rotary Valve Wrench 13 mm
Wrench 19 mm
Wrench 10 mm
Teflon Hammer
Screw Driver (-)
T wrench 13 mm
Waist Bag
Snapring
Spare Part Box
Consumable Clotch
Food Grade Oil
Ladder
Hydraulic
Pumping Wrench 13 mm
Wrench 19 mm
Wrench 22mm
L6
Teflon Hammer
Spare Part Box
Plier
Technician Name

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Planning and Scheduling | Forms and Other Resources

Illustration
A checklist technicians use for spare parts that identifies the type of execution activity
(i.e. R = repair / modification or r = replacement):

Checklist of Spare Part

PT. Unilever Indonesia. Tbk Review 0
Line: D15 R.[Link]
M 1 2 3 4 5 6 6 8 9 10 11 11 12
M/C: TFS-806-RTL Spare Part
Code W 4 8 12 16 20 24 28 32 36 40 44 48 52
No DESCRIPTION Quality Spare Part Number Condition
UNIT ROBOT TUBE LOADER
1 Motor servo Axis 1 CBM 1 ID 4053 G G
Motor servo Axis 2 CBM 1 ID 4053 G G
Motor servo Axis 3 CBM 1 ID 4053 G G
Motor servo Axis 4 CBM 1 ID 4054 G G
2 Teflon fingger IR 20 ID 4057 G G
3 Mandrel IR 20 ID 4058 G G
4 Slide guide IR 4 ID 4059 G R
5 Support bearing fingger TBM 20 ID 4060 r r
6 Bearing TBM 20 ID 4061 r r
7 Valve IR 4 ID 4062 G G
8 Cylinder IR 4 ID 4063 G G
9 Absorber IR 4 ID 4064 G P

UNIT TUBE ORIENTATION

1 Motor servo 1 CBM 1 ID 4073 G G G
2 Motor servo 2 CBM 1 ID 4073 G G G
2 Timing belt T5-365 TBM 1 ID 4530 r r r
3 Timing pulley TBM 2 ID 4531 r r r
4 Cam IR 1 ID 4532 G G G
5 Bearing IR 2 ID 4533 G G R

Technician initial
Supervisor
Fitter Line

METODE GUIDE

Code: IR: (Multimeter, JanqkaSarong, Virval) CBM:.(SPM, Thormograph) TBM

Condition G: Good requires no repair (Part OK) R: Repair or modification r: Replace as part of TBM
F: Requires careful inspection next repair (Part Abnormal) P: Part requires immediate replace rasie a request

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Planning and Scheduling | Forms and Other Resources

5.6.6 Engineering Data-drawing-document

The maintenance planner manages the engineering data-drawing-document management
system (ED3MS) used by the factory, if available. The ED3MS establishes a single point of access
to the factory’s engineering information. It links engineering information to the functional location
(i.e. plant level down to component / part level) for all types of maintenance activities. The primary
benefit of an ED3MS is it provides a way to quickly find, capture, organise, link and visualise large
volumes of data and documents through a simple web portal.

Engineering data-drawing-documents are essential for effective maintenance planning and

execution and also for project management. Every person involved in designing, constructing,
operating or maintaining a factory needs ready access to accurate information. The types of files
stored include the following:

Engineering Data-drawing-documents

AutoCAD® files Scanned drawings

Checklist of spare parts Scanned supporting documents

Checklist of tools Soft copies of vendor files (e.g. operating

manuals, equipment parts lists, rotating or
critical spares lists, etc.)
Digital images of parts and machines

Technical drawings and sketches of

Line layout
components

PDF files
Videos of SMPs and SOPs

Plant layout

The process of reviewing documents can be done directly in the master data source or it can be
proposed by the technician for further approval by the authorised maintenance team.

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 6 BUDGETING AND COST MANAGEMENT

6.1 BUDGETING AND COSTING SYSTEMS .............................................. 118

6.1.1 Budgeting System ............................................................................ 118
6.1.2 Costing System ................................................................................ 119

6.2 DEVELOPING PLANNED AND BREAKDOWN MAINTENANCE

BUDGETS ............................................................................................ 119
6.2.1 Process for Developing Planned Maintenance Budget ................................ 119
6.2.2 Methods for Developing Planned Maintenance Budget ............................... 120
6.2.3 Standards and Benchmarks for Maintenance Costs .................................. 123
6.2.4 Process for Developing Breakdown Maintenance Budget ............................ 126
6.2.5 Management Review of Maintenance Budget ........................................... 127

6.3 MAINTENANCE JOB COSTING ........................................................... 128

6.3.1 Spare Parts ..................................................................................... 129
6.3.2 Maintenance Labour .......................................................................... 129
6.3.3 Third-party Services .......................................................................... 130

6.4 GLOBAL PRODUCT COSTING RULES................................................. 131

6.4.1 CRG 25 Production Costs .................................................................... 132
6.4.2 Definitions of Pull and Push Resources .................................................. 133
6.4.3 Repairs and Maintenance for Production ................................................ 133

Maintenance Costs

1 600 000 € 1 516 859

1 564 058
1 400 000 €
1 371 384
1 188 179
1 200 000 €
1 016 061 1 120 071
1 000 000 €

800 000 €

600 000 €

400 000 €
498 784
117
373 866
251 313
200 000 €
Budgeting and Cost Management | Budgeting and Costing Systems

6 BUDGETING AND COST MANAGEMENT

Introduction
An organisation's maintenance strategy must be in line with its business strategy. In World Class
Manufacturing (WCM), the drive for on-time delivery, first-time quality and cost competitiveness
is significantly changing how maintenance is viewed and managed. The effective management of
planned maintenance enables an organisation to maximise the uptime of equipment and assets
at minimum cost. It is especially critical in organisations that have large investments in capital
assets. In Unilever we have a lower asset utilisation but also a higher investment in new capital
assets than our competitors. This puts us at a cost disadvantage in the marketplace.

In WCM, the vision of the Professional Maintenance (PM) Pillar is to have zero breakdowns and
maintenance activities that are cost effective and efficient. The budgeting and costing systems
play key roles in achieving this vision. These systems help us develop and monitor plans for
maintenance and resource requirements, and also quantify factual data on which to base
decisions. The wrong plan or lack of data can increase costs through over maintenance and poor
investment decisions.

6.1 BUDGETING AND COSTING SYSTEMS

Properly designed and implemented budgeting and costing systems play a major role in improving
the overall performance of the maintenance function.

A major prerequisite for an effective budgetary system is a time cycle for carrying out all phases
of the budgetary process. A master budget must be developed and approved well before the
beginning of the budget year. A budget cycle timetable (calendar) should be prepared to help
satisfy this prerequisite.

A major prerequisite for an effective costing system is having an accurate method for tracing and
allocating costs to each individual job. Using methods that significantly distort job costs will lead
to poor decision making and negatively affect the performance of the maintenance function.

6.1.1 Budgeting System

A budgeting system instills the discipline of systematic planning into an organisation and
provides a two-way channel of communication across the organisational hierarchy. This two-way
communication (top-down and bottom-up) is directly linked to the iterative nature of the
budgetary process. Also, well-formulated budgets provide a sound basis for evaluating the
technical and financial feasibilities of planned actions and the actual performance of
departments and managers.

A budgeting system is also a vital tool for ensuring personnel have a unified understanding
of strategic objectives. In fast-moving consumer goods (FMCG), success in the competitive
marketplace requires flexibility and innovation mainly through the development of new products,
while continuously improving productivity and customer care. Building the effects of innovation
and continuous improvement into annual operating budgets can only be achieved through
continuous reviews that maintain a rolling forward-looking budget. Ideally, this would be done
on an annual rolling basis, but minimally it would cover the rest of the current year.

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

For department managers, a budgeting system should help them understand how their
operating budgets help to fulfil an organisation's mission. They must have a thorough
understanding of their department's role in accomplishing it. Budget performance reports
provide valuable feedback to them for controlling operations and revising plans as circumstances
change. The reports should establish control limits for budget variances, so they can focus their
attention on significant events. A budgeting control system should keep track of variances to
ensure they are within control limits, so upward and downward trends can be identified and
reported. The system should also ensure variances outside of control limits are acted upon in a
timely manner.

6.1.2 Costing System

A costing system is designed to accumulate cost data and then assign that data to cost objects.
The assignment of costs to cost objects is done through traceability or allocation:

• Some costs can be directly traced to a cost object and are classified as direct costs.

• Some costs cannot be directly traced to a cost object and are classified as indirect costs.
These costs are assigned to cost objects through an allocation. The basis for allocation is
rank-ordered in terms of rigor as follows:

Cause and effect.

Benefits received.
Consistency.

Since planned maintenance jobs have different technical specifications and consume varying
levels of resources, the cost of each job must be developed separately. In Unilever the preferred
cost allocation method is activity-based costing, which uses a small set of allocation keys
for simplicity.

Unilever has decided through the Global Product Costing (GPC) programme (see Global Product
Costing Rules topic) that machine hours will be used as the allocation key for maintenance costs
that cannot be directly traced to a cost object.

6.2 DEVELOPING PLANNED AND BREAKDOWN

6.2 MAINTENANCE BUDGETS
The planned maintenance budget is developed first using zero-based budgeting. The
breakdown maintenance budget can be developed based on its actual historical percentage of
total maintenance cost adjusted for expected savings from WCM initiatives. The combined total
maintenance budget is first reviewed with the finance team in context of the overall factory budget
and strategic targets. Then it is presented to the factory management team.

6.2.1 Process for Developing Planned Maintenance Budget

Maintenance supervisors, with support from maintenance planners, have primary responsibility
for developing planned maintenance operating budgets.

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

They forecast the number of maintenance jobs that will be required during the budget time period
based on the forecasted level of manufacturing, core operations and marketing activities.

The operating budget should identify the primary and alternative means for achieving objectives,
the amount of resources needed for each alternative, and if additional resources must be
acquired. The resources should include:

• Spare parts by types and quantities.

• Labour skills by headcount.

• Third-party services.

• Training and manpower development.

• Maintenance equipment and facilities.

The budgetary process establishes required and available resources and also identifies
constraints or bottlenecks that would make the budget technically infeasible. Optimisation
techniques should be used to resolve constraints or bottlenecks. The budgetary process should
also facilitate coordination and communication between maintenance and materials management
personnel. The objective is to ensure the required spare parts will be available in terms of
quantity, quality and timing. It also helps minimise excess inventory and supports a just-in-time
(JIT) environment.

Throughout the actual time period, maintenance personnel schedule jobs so they meet or exceed
reliability factors. Effective coordination and communication with manufacturing, core operations
and marketing personnel are critical during this phase.

6.2.2 Methods for Developing Planned Maintenance Budget

There are two primary methods for developing planned maintenance operating budgets:
top-down and bottom-up.

[Link] Top-down Budget

If there is not a consistent management strategy on maintenance activities, top-down budgeting
is the preferred method. Top management decides the total budget amount to allocate for
repairing equipment breakdowns and other maintenance activities. Teams primarily try to avoid
breakdowns through unplanned maintenance and then use the excess funds from breakdowns
for other maintenance activities.

An advantage of top-down budgeting is budgets are strictly controlled. Disadvantages are the
unexpected and very high costs of major equipment stoppages and the risk that factories will be
unsustainable in the future. After a few years of this maintenance strategy, huge budgets will
likely be required to overhaul equipment and critical production lines - unless the budget has
been set (through good luck) at an appropriate level.

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

[Link] Bottom-up Budget

If there is a consistent management strategy on maintenance activities, bottom-up budgeting
is an excellent approach. Spare part, maintenance labour and third-party service costs are
estimated line-by-line to arrive at a total maintenance budget. Data from field and maintenance
calendars feed the estimated requirements into the budgeting process.

Bottom-up budgets must be prepared very carefully. Overhaul and other maintenance activities
that are done in different periods of the year must be budgeted and actual costs closely tracked.
Otherwise, maintenance budgets can easily be overspent and cost performance targets missed.
Teams must be fully aware of the risks of over maintenance and make budgeting assumptions
based on their cost targets for equipment breakdowns.

Zero-based budgeting (ZBB) is a form of bottom-up budgeting, and it is the basic approach to
budgeting in Unilever. ZBB starts from a zero base and requires justification for all expenses
added to the budget for each new time period. Each item of maintenance must be analysed for
its needs and costs.

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

Illustration
Bottom-up Budget Worksheet for Annual Maintenance Costs

Jan Feb Mar Apr … FY

Purchasing Maintenance Service Responsible Cost

Transformer Maintenance -

Elevator Maintenance (Monthly) -

Fire Protection System Maintenance -

Etc. -

Sub Total -

Subcontractor Daily Wage

Mechanic Works -

Electricity Works -

Structure Works -

Etc. -

Sub Total -

Annual Maintenance

Line 1 -

Line 2 -

Line 3 -

Etc. -

Sub Total -

Utilities

Compressor Maintenance -

Vessel Area -

NH3 Maintenance of Manufacturer

-
Machines

Etc. -

Sub Total -

Construction
Construction -

Engineering -
Manufacturing -

Sub Total -
Total -

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

This can be summarised in a financial spreadsheet:

R&M
2016 LF Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FY
R&M/Material 134 190 173 136 182 115 134 158 120 170 154 131 1 798

R&M/Labour 91 118 64 168 74 127 80 108 117 128 128 128 1 332

Total 225 308 237 305 256 243 213 267 237 298 282 259 3 130

BWI Cones &

-33 -32 -29 -35 -25 -36 -22 -31 0 0 0 0 -244
Couverture Actual

BWI Cones &

0 0 0 0 0
Couverture Forecast

Total 258 340 266 340 281 279 236 298 237 298 282 259 3 374

6.2.3 Standards and Benchmarks for Maintenance Costs

ZBB can be achieved by using industrial standards and benchmarks to budget maintenance
costs. Standards are available from a variety of sources and are frequently used as another data
point when developing budgets. These standards can help maintenance management evaluate
the reasonableness of their operating budgets and assumptions, in addition to the simpler
comparison between years of "Year N” versus “Year N-1”. However, proceed with caution.
Standards and benchmarks have built-in assumptions about spare part and labour costs,
which can vary considerably across countries.

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

Example
Industrial Standards for Maintenance Costs (from Corlu IC Factory)

Ratio Definition EMYL Min Max

Targets Target Target

R1.0 Maintenance Cost as %

Maintenance importance (10%-12%) 10% 12%
of CC

R2.0: Eco Weight Maintenance annual cost / Gross book N/A 3% 4,50%
value (GBV)

R2.1 Maintenance process cost / Process GBV (2,2%-2,6%) 2,20% 2,60%

R2.2 Item for fill & pack & palletisation (3,5%-4,5%) 3,50% 4,50%

R2.3 Item for utilities (3,8%-4,2%) 3,80% 4,20%

R2.4 Item for building & infrastructure (1%-1,5%) 1,00% 1,50%

R2.5 Other Maintenance Remaining cost (as % of total) not N/A 3% 8%

Cost as % of Total declared above

R3.0 Maintenance Maintenance productivity (in m€ of GBV N/A 2,2 3,5

Productivity maintained per FTE) except breakdown

R4.0 Maintenance Productivity (in m€ of GBV / FTE) N/A 2 3,3

Productivity Including including breakdown maintenance
Breakdown Maintenance

R5.0 % Breakdown Breakdown maintenance represents <33% 20% 33%

x% of the maintenance activity
(others are preventive and improvement)

R6.0 Breakdown Average number of breakdowns per 1,5 1,2 1,8

Covering Rate repairman per shift

R7.0 Stock Importance Stock value (GBV-Building) (0,8%-1,2%) 0,80% 1,20%

R7.1 Stock Rotation Annual part withdraw value / Annual 0,5 0,45 0,55
stock average value

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

Example
2009 Benchmark Study for Maintenance Targets in Unilever European Factories

Ratio EMYL Min Max HC PC Savoury SCC IC Beverages

Targets Target Target Dressings

R1: Maintenance
Cost as %
of CC (10%-12%) 10% 12% 10,65% 11% 10,31% 15,26% 10,34% 18,90%

R2: Eco weight

N/A 3% 4,5% 4,06% 4,18% 4,14% 5,31% 4,86% 7,05%

R2.1 (2,2%-2,6%) 2,20% 2,60% 5,83% 3,47% 4,48% 4,45% 3,62% 5,42%

R2.2 (3,5%-4,5%) 3,50% 4,50% 4,02% 4,13% 5,08% 8,71% 5,91% 7,28%

R2.3 (3,8%-4,2%) 3,80% 4,20% 4,74% 4,28% 5,75% 7,60% 6,86% 7,74%

R2.4 (1%-1,5%) 1,00% 1,50% 4,12% 4,29% 1,56% 2,61% 3,33% 6,01%

Other Maint
Cost as % of N/A 3% 8% 6,27% 15,45% 6,39% 6,24% 6,49% 1,92%
Total

R3: Maint
N/A 2,2 3,5 4,57 3,68 4,17 3,64 3,16 3,64
Productivity

R4: Main
Productivity N/A 2 3,3 3,66 2,27 2,86 2,67 2,07 1,76
including BD

R5: % of
<33% 20% 33% 25,50% 22% 34,51% 27,59% 31,88% 48,61%
Breakdown

R6: Breakdown
Covering Rate 1,5 1,2 1,8 1,14 0,75 1,89 1,71 1,13 3,61

R7: Stock
(0,8;1,2%) 0,8% 1,2% 2,17% 1,06% 1,50% 1,52% 2,05% 1,57%
Importance

R7.1: Stock
0,5 0,45 0,55 0,54 0,46 0,54 0,81 0,59 0,91
Rotation

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

6.2.4 Process for Developing Breakdown Maintenance

6.2.4 Budget
The breakdown maintenance budget can be estimated using three figures:

1. Actual historical data of breakdown maintenance as a percentage of total maintenance cost.

2. Estimated percentage reduction in breakdown maintenance that will result from WCM
initiatives for the budget year.

3. Planned maintenance for the budget year based on a bottom-up approach.

Calculation of Breakdown Maintenance Budget

Breakdown Breakdown maintenance as a percentage of total maintenance is calculated for

Percentage of the budget year using the first two figures. Assume historically breakdown
Total Maintenance maintenance is 36% of total maintenance cost. Additionally, assume that WCM
= 25% initiatives will result in a 30% decrease in breakdown maintenance costs for
the budget year. The 36% historical percentage is multiplied by 70% (100% -
30% decrease), which equals 25% as the estimated breakdown maintenance
percentage of total maintenance for the budget year.

Total Maintenance The total maintenance budget is calculated. Assume the bottom-up budget
Budget = €800k estimated €600k for the planned maintenance budget. If breakdown
maintenance is expected to equal 25% of total maintenance, then planned
maintenance will be 75% (100% - 25%). The €600k is divided by 75%, which
equals a total maintenance budget of €800k.

Breakdown The breakdown maintenance budget is calculated. The €800k total maintenance
Maintenance Budget budget less the €600k planned maintenance budget equals €200k for the
= €200k breakdown maintenance budget.

Note As explained in Section 9 - WCM and Professional Maintenance, reducing the

breakdown maintenance cost depends upon expanding WCM activities. The historical
breakdown maintenance percentage should always be analysed and adjusted based on
each factory’s expected reductions from WCM improvement initiatives.

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Budgeting and Cost Management | Developing Planned and Breakdown Maintenance Budgets

Example
At one European factory, actual historical data shows after two years of WCM improvements that
2015 breakdown maintenance was 18% (€251,313 / €1,371,384) and planned maintenance was
82% (100% - 18%) of total maintenance cost.

At the end of 2015, all AA machines had reached step 3, which means there were no breakdowns
due to lack of maintenance. In planning for 2016, all A machines are also expected to reach step 3,
which will further reduce breakdown costs. Part of this reduction will come from increasing
planned maintenance, which has already been included in the 2016 bottom-up planned
maintenance budget.

Assume the factory’s 2016 planned maintenance budget is €1,200k. And breakdown costs are
expected to decrease 40% from 2015 due to the expected WCM improvements. The factory’s 2016
budget for breakdown maintenance is set at 11% of total maintenance costs, which is the 2015
breakdown maintenance of 18% multiplied by 60% (100% - 40% decrease from 2015).

Using these assumptions, the 2016 total maintenance budget is €1,348k ((€1,200k / (100% - 11%).
And the breakdown budget is €148k (€1,348k - €1,200k).

Maintenance Costs

1 600 000 €
1 564 058 1 516 859

1 400 000 €
1 371 384
1 188 179
1 200 000 €
1 120 071
1 016 061
1 000 000 €

800 000 €

600 000 €
498 784
400 000 €
373 866
251 313
200 000 €
2013 2014 2015
Planned Maintenance Breakdown Total Maintenance Cost

6.2.5 Management Review of Maintenance Budget

The maintenance budget must first be reviewed with the finance team and reviewed in the context
of the overall factory budget and strategic targets. After the review, one waterfall chart can be
prepared to visualise the key elements that are driving changes in the annual maintenance budget
from the previous year. Actuals for these elements can then be easily tracked against the budget
throughout the year.

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Budgeting and Cost Management | Maintenance Job Costing

Example
Here is an example of a waterfall chart for maintenance activities budgeted for the year. Annual
maintenance costs for the previous (far left column) and budgeted (far right column) years are
shown as full columns. Elements budgeted to increase costs (3 left columns) are shown as
partial columns. Budgeted reductions and savings from improvement activities (2 right columns)
are shown as partial columns.

R&M 2016 Cost Per Tonne € Waterfall Chart

0,68 0,91
0,46
0,18 1,64
8,64 8,86

2015 Volume Inflation (7%) Exchange Extra Saving 2016

Change Rate (9%) Phenomena

2015 Volume Inflation (7%) Exchange Extra Saving 2016

Change Rate (9%) Phenomena
8,64 0,46 0,68 0,91 -0,18 -1,64 8,86
8,64 8,64 9,09 9,77 10,50 8,86 8,86
0,00 0,00 0,00 0,18 1,64
0,46 0,68 0,91 0,00 0,00

The total maintenance (planned and breakdown) budget is presented to the factory management
team after review by the finance team.

Budget performance reports should highlight both effectiveness and efficiency of operations.
The difference between budgeted and actual achievements is a measure of effectiveness
(i.e. closeness to accomplishing objectives). Whereas the difference between resources actually
consumed and resources budgeted to be consumed is a measure of efficiency (i.e. it is an input /
output relationship).

6.3 MAINTENANCE JOB COSTING

The cost elements of maintenance jobs, both planned and unplanned, are:

• Spare parts.

• Maintenance labour.

• Third-party services.

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Budgeting and Cost Management | Maintenance Job Costing

6.3.1 Spare Parts

Spare parts represent the materials that are used for planned and unplanned maintenance jobs
and consist of the following three types:

1
Repairables: spare parts that can be repaired and reused such as gearboxes,
pumps and motors.

2 Consumables - Technical: spare parts that must be disposed after their use such
as belts, chains, cams, nuts and bolts.

3 Consumables - Non Technical: spare parts such as cleaning supplies, chemicals,

personal protective equipment, tape, batteries and tools.

For planned maintenance jobs, the spare part requirements for each job are available either
on the maintenance schedule for each piece of equipment / asset or on the job specifications
document. Hence, the maintenance schedule or job specifications document provides the basis
for determining the standard quantities of spare parts that should be consumed.

The standard materials cost of a planned maintenance job should reflect the quantities allowed
per the bill of materials at prices that reflect normal supply market conditions. The actual
consumption of spare parts is usually charged in a planned maintenance job cost sheet at
standard prices. Why not at actual prices? The reason is the difference between actual prices
and standard prices is a spending variance that is not controlled by maintenance management.
This spending variance would be relevant to the Procurement Department. Whichever basis is
used for the job costing detail, actual cost including the price variance will be charged to the
maintenance budget.

6.3.2 Maintenance Labour

Maintenance labour represents all in-house labour resources that work on planned and
unplanned maintenance jobs.

For planned maintenance jobs, labour usually comprises a team with several skill sets, which
are needed to ensure the quality and cost effectiveness of the job. Thus, the mix of labour skills
must be predetermined and should be reflected in the maintenance schedule or job specifications
document. The maintenance labour information is initially (or should be) based on a job road map.
This map provides information about processes to be performed, labour skill(s) to be applied, and
amount of labour time to be used under normal conditions.

The maintenance schedule or the job specifications document provides the basis for determining
the standard hours and mix of maintenance labour that will be reflected in the labour cost. The
actual utilisation of labour services is charged in a planned maintenance job cost sheet at
standard wage rates. Why not at actual wage rates? The reason is the difference between the

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Budgeting and Cost Management | Maintenance Job Costing

actual and standard labour wage rates is a spending variance that is not controlled by
maintenance management. This spending variance would be relevant to the Human Resources
Department. However, the actual wage rate will be reported in the maintenance budget actuals
and department management should be monitoring if overtime levels are increasing at
any time.

Time tickets record the actual utilisation of labour in terms of hours and mix for all maintenance
workers that provided a record of their time for each maintenance job. These time tickets provide
the input for the labour cost where available.

6.3.3 Third-party Services

In addition to spare parts and maintenance labour, planned and unplanned maintenance jobs can
require services that are purchased from third parties. Examples of third-party services include:

• Design services such as design of new equipment / spare part and electrical layout.

• Planning services such as support in planned maintenance scheduling.

• Skills training such as welding and piping.

• Advanced software systems that optimise repair and maintenance work.

• Temporary or contract labour to perform tasks instead of using in-house maintenance labour.

For planned maintenance jobs, some third-party services are purchased for specific jobs such as
design of an exact spare part. The costs for these services are charged to the relevant jobs.

But other third-party services such as optimisation software systems benefit multiple, if not all,
planned maintenance jobs and cannot be traced to a specific job. The costs of these services are
labelled as planned maintenance overhead costs. Note planned maintenance overhead costs are
distinct from factory overhead costs, which include factory depreciation, utilities and supervision.

[Link] Allocation of Maintenance Overhead Costs

The most feasible way to include planned maintenance overhead costs as part of the costs of
planned maintenance jobs is through an allocation. There are three common approaches to
allocation: 1) common denominator, 2) activity-based costing, and 3) planned usage.

1) Common Denominator

A common denominator is identified to use as a basis for allocating overhead costs such as
maintenance job hours or machine hours. This approach assumes all maintenance labour hours
or machine hours require the same amount of overhead support. However, most likely a single
basis for allocating overhead will not have a causal relationship with the incurrence of overhead
costs. Using a single rate could lead to cross-subsidisation of costs across maintenance jobs. This
would eventually lead to the distortion of planned maintenance costs, making the cost information
potentially (if not totally) misleading.

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Budgeting and Cost Management | Global Product Costing Rules

2) Activity-Based Costing

Since maintenance jobs use different support activities and consume resources from these
activities differently, these differences must be captured in the job cost. It becomes quite
critical when overhead costs are relatively high in relation to the total planned maintenance
costs. Activity-based costing (ABC) can address these issues because it:

• Identifies major support activity areas within planned maintenance.

• Identifies cause-and-effect cost driver(s) for each activity area.

• Develops total budgeted cost (variable and fixed) and total budgeted demand for each activity
under normal conditions.

• Calculates a predetermined overhead rate per unit of activity for each activity area by dividing
total budgeted cost by total budgeted demand.

3) Planned Usage

Planned usage uses the predetermined overhead rates from ABC to allocate overhead costs to
jobs based on the planned usage for that activity. If a support activity is not planned to be used on
a job, it does not receive a cost allocation for that activity.

Under ABC, the allocation of overhead costs becomes a function of the support resources
planned to be (or actually) consumed in each activity area. The actual utilisation of support
activities is charged at the predetermined overhead rates. First, timeliness in costing the jobs is
important. Total cost can be determined as soon as jobs are completed, rather than waiting until
fiscal year-end to determine the “actual” overhead rate of each support activity. Second, seasonal
fluctuations in maintenance cost can be avoided by basing the overhead rate on estimated costs
and volume of support activities under normal conditions.

6.4 GLOBAL PRODUCT COSTING RULES

A single product costing standard is a prerequisite for an efficient global supply chain.
A global standard is an essential building block for understanding performance and conducting
benchmarking activities across our supply chain. In particular, it aids cross-border and
inter-regional sourcing studies.

ABC is a methodology that identifies activities in an organisation and assigns the cost of each
activity to products based on their consumption of resources. It is imperative that the allocation
basis (i.e. the cost drivers) reflect business reality to enable accurate product costing and
profitability. All definitions have been aligned with the Industrial Performance work stream.

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Budgeting and Cost Management | Global Product Costing Rules

Supply Chain Costs by Cost Reporting Group (CRG)

CRG 21 - Raw materials CRG 31 - Allocated charges for supply costs

CRG 22 - Packaging costs CRG 32 - Supply chain indirect costs

CRG 25 - Production costs CRG 35 - Logistics costs

CRG 27 - Bought-in products

The Cost Deployment Pillar Circle has developed a WCM Cost Perimeter and definition, which
limits the WCM perimeter to CRG 25 and Material Waste in CRG 21 and 22. For maintenance, CRG
25 is the relevant area to focus upon.

6.4.1 CRG 25 Production Costs

CRG 25 includes all of the factory operations from receipt of raw materials up to shipping
finished products from the factory docks. It includes the costs of site services, management,
other production-related costs, and charges from shared services incurred by the country
head office.

“Pull” production costs are allocated to products by using “routings” in SAP. For costing
purposes in most situations, only one routing will be used (decision by ManEx Capabilities
manager). A “mixed routing” is acceptable only if the use of one routing would lead to a
significant shift in standard costs compared to actual costs or would not recover the SU
budget in full. These exceptions require prior sign-off by the regional category finance director.

Pull Production Costs

Cost of factory management, supervision and Cost of utilities, either bought-in or produced
direct labour. in-house.

Cost of repair and maintenance activities. Engineering management and services.

Site personnel services. Unused facilities.

Cost of personnel engaged in quality inspection Material inventory differences and write-offs
and control at the point of actual processing. incurred as a result of the production process.

Depreciation and lease / rental costs of Costs relating to storage of products still in
production plant and equipment. the production phase.

Royalties and service fees payable to third Chemicals and other processing materials
parties for the use of a production process. used in the conversion and service
processes, but are not contained in finished
products (e.g. chemicals used in bleaching).

Building and site services. Time and work study experts.

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Budgeting and Cost Management | Global Product Costing Rules

6.4.2 Definitions of Pull and Push Resources

Through the Managing Manufacturing Performance Code, the programme of Industrial
Performance introduced new definitions and concepts into the business. These are designed to
bring transparency and consistency to our approach for cost control and cost estimation, which
will drive factory performance.

Industrial Performance defines a resource as a source of input which is used in order to

produce a unit of output or supports the production process. Some resources are used directly
in production. Others are not directly used in production but are consumed within the factory.
For example, although buying activities are not performed at the factory site, they are required
as a resource and are included.

• Pull resources are the resources that are required on a production line for transformation
purposes. These are the resources that are necessary from the point of view of the
manufacturing processes. The consumption of these resources can be identified and
measured in relation to a unit of output.

• Push resources are all resources that are not pull resources but are still within the
boundaries of a factory. Examples include site security, people and general utilities in
warehouses, and repairs and maintenance.

Factory labour, utilities and depreciation are the only resources in this document to have both
pull and push elements.

In some clusters, the terms “variable” and “fixed” are maintained as required for the
recovery calculation for toll fee payment between SU and SC companies in the Mountain and
Cordillera models.

6.4.3 Repairs and Maintenance for Production

Repairs and maintenance (R&M) for production are push resources. R&M includes the following:

• All planned maintenance for production lines such as modifications, overhauls, inspections
and lubrications.

• All unscheduled maintenance such as solving breakdowns or making necessary repairs.

• Costs for spare parts, non-management labour, and third-party services that are used to
perform R&M activities.

• Engineering services that provide R&M for processing and packing plant and equipment.
This should include engineering salaries, wages of maintenance staff, spare parts and
third-party services.

• Costs to repair and maintain equipment used directly within processing.

All R&M not related to production (e.g. utilities, buildings, roads and other site infrastructure) are
included in either “Utilities for Production”, “Other Production Costs” or “BWI Processing Costs”.

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Budgeting and Cost Management | Global Product Costing Rules

[Link] Costing for Factory Budgets

Costing for factory budgets must be done according to this guidance. For detailed costing of
maintenance, three key elements (spare parts, maintenance labour and third-party services)
must be identified as activity-based.

The GPC Allocation Driver (from Unilever GPC Rule Book) of machine hours should be used for
the allocation of costs that cannot be captured directly to a maintenance activity. A current version
of the Unilever GPC Rule Book can be accessed on the Finance portal.

Activity R&M - Production

Definition All planned line maintenance in the processing, packing and palletisation
areas including modifications, overhauls, inspections and lubrications, and all
unscheduled line maintenance including solving breakdowns. This includes
spare parts consumed as well as related depreciation (if relevant) and third-
party costs for bought-in R&M services.

Allocation Driver Level 1: Direct (as per budget) per line.

Level 2: Allocate to SKUs in that line by machine hours.

Fixed Costs Recovery Fixed

Classification

Stock Relevant Yes

Comment Consumption of spare parts and third-party services must be posted on

line level.

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Budgeting and Cost Management | Global Product Costing Rules

Illustration
Other CRG 25 Related Pull and Push Production Costs

COPA Value Field COPC SC Activity Fixed Cost Allocation Key

Stock
Value Field - 38 Primary Cost Level 1 Level 2 Recovery Standard Actual
Relevant
Components - Classifica
33

Factory Labour Factory Labour Production Processing Yes

Cost - Pull - Pull Crew (Mixing)

Packing
(Filling, Casing)
Man
Variable
Repacking Hours
(Non
Promotion)

Unused Unused
N/A
Labour Labour

Factory Labour Factory Labour Supervisor/ Processing

Cost - Push - Push Shift Leader (Mixing)

Packing Fixed Man Man

(Filling, Casing) Hours Hours
Repacking
(Non
Promotion)

BWI Processing BWI Processing Production BWI -

Cost - Variable Cost - Variable Crew Production
Pull Crew

BWI Unused BWI - Unused Variable

Labour Labour

Utility for BWI BWI - Utilities

Processing
Machine
BWI Processing BWI Processing Depreciation BWI - Hours
Cost - Fixed Cost - Fixed for BWI Depreciation
Pull Processing

Depreciation BWI Unused Machine

for BWI Capacity Hours
N/A
Processing -
indirect

BWI Utility for BWI BWI - Utilities Fixed Machine

Processing Processing - In house Hours
Cost - Fixed Production
Push

BWI BWI Mgr / Man Man

Supervisor/ Supervisor/ Hours Hours
Shift Leader Shift Leader

R&M for BWI BWI - R&M

Processing

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Budgeting and Cost Management | Global Product Costing Rules

COPA Value Field COPC SC Activity Fixed Cost Allocation Key

Stock
Value Field - 38 Primary Cost Level 1 Level 2 Recovery Standard Actual
Relevant
Components - Classifica
33

Utility for In-House In-House Supervisor/ Yes

Production - Fixed Utilities Utilities Shift Leader
Facilities Cost Facilities Cost
(Push) Crew (Prod +
Integrated
Maintenance
+ Integrated
QC)
Fixed
Engineering
Cost

R&M

Depreciation

Input Machine Machine

Utilities Hours Hours
Utility for Bought in Bought in Gas / Fuel
Production - Utilities Cost Utilities
Variable (Pull) Cost Electricity

Water Variable

Refrigeration

Steam

Air

Depreciation for Depreciation Depreciation Processing

Production for Production for Production (Mixing)

Packing
(Filling, Casing)

Unused Unused
N/A
Capacity Capacity

R&M for R&M for R&M for Consumption Fixed

Production Production Production of Spare Parts

Labour
Machine
Hours
Depreciation

3rd Party
Cost

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Budgeting and Cost Management | Global Product Costing Rules

COPA Value Field COPC SC Activity Fixed Cost Allocation Key

Stock
Value Field - 38 Primary Cost Level 1 Level 2 Recovery Standard Actual
Relevant
Components - Classifica
33

Other Production Other Other Factory Yes Man Man

Cost Production Production Management Hours Hours
Cost Cost
Site Service

Waste Removal # of # of
incl. Effluent Pallets of Pallets
FG of FG

Insurance

Quality
Control

Site Fixed Machine Machine

Engineer Hours Hours

SUIT
(Process
Development)

SU Tax

Palletising & Logistics RMPM # of # of

Logistics in Cost in Ware house Pallets of Pallets
Factory Factory FG of FG

FG Ware
house

Forklift Cost

Other logistics
costs in
Factory # of # of
Pallets of Pallets
Palletising Palletising FG of FG
Labour

Depreciation

Other
Palletising
Cost

Inter SU Inter SU Inter SU Variable Bottom Std Cost

transport transport transport Up for var
Allocation
SU Pallet SU Pallet SU Pallet

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Budgeting and Cost Management | Global Product Costing Rules

COPA Value Field COPC SC Activity Fixed Cost Allocation Key

Stock
Value Field - 38 Primary Cost Level 1 Level 2 Recovery Standard Actual
Relevant
Components - Classifica
33

Other Production Other Other Finance Yes

Services Production Production
Services Services HR

IT

B&P in
Factory
Machine Machine
Fixed
QA Hours Hours

TPM

Site SHE

Industrial
Engineer

Other Internal
Allocation

SU Repacking for SU Repacking SU SU Additional Machine Machine

Promotion for Promotion Repacking Repacking Hours Hours
for Cost for
Promotion Promotion

Subcontracting Subcontracting Subcontracting Standard N/A (No N/A (No

Fee (to be split Fee Fee Cost Variable Allocation) Allocation)
into 2 components
in Connect) Purchase N/A (not Direct
Variance incl Std per FG
Cost)

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7 SPARE PART MANAGEMENT

7.1 OBJECTIVES OF SPARE PART MANAGEMENT................................... 140

7.2 SPARE PART MONITORING SYSTEM .................................................. 140

7.3 SEVEN STEPS OF SPARE PART MANAGEMENT ................................ 144

7.3.1 Step 1: Sort Out Spare Parts ................................................................ 145
7.3.2 Step 2: Establish Spare Parts Policy ....................................................... 145
7.3.3 Step 3: Put Spare Parts in Order ........................................................... 150
7.3.4 Step 4: Determine Quantity of Each Spare Part to Keep .............................. 151
7.3.5 Step 5: Establish a Visual Management System at the Storeroom .................. 157
7.3.6 Step 6: Establish a Computerised Spare Parts Management ........................ 158
7.3.7 Step 7: Standardise Spare Parts as Much as Possible with EEM .................... 158

7.4 BEST PRACTICES AND BARRIERS TO IMPLEMENTATION ............... 159

7.5 ROLE OF SPARE PARTS STOREKEEPER ............................................ 161

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Spare Part Management | Spare Part Monitoring System

7 SPARE PART MANAGEMENT

Introduction
Well-organised spare part management is the key to achieving an optimal combination of two
“mutually exclusive” visions. One vision is to have 100 percent of spare parts available, so parts
can be immediately delivered to breakdown locations and repairs made on the first attempt.
The second vision is to hold the lowest possible levels of spare parts in stock.

It is very important to achieve this optimal condition because of its significance to any responsible
Professional Maintenance (PM) organisation:

• To maximise production uptime, all preventive and breakdown maintenance should be

completed in minimal time.

• To decrease repair and maintenance costs and make production costs leaner, the amount of
spare parts in the storeroom should be minimal with high quality storage conditions.

By using a seven-step spare part management process, this optimal condition can be achieved
and improved on by PM Pillar leads, maintenance planners and spare parts storekeepers.

7.1 OBJECTIVES OF SPARE PART MANAGEMENT

The main objectives of spare part management include:

• Reduce cycle-time by reducing lead times (LTs), transportation times, and repair and
return times.

• Improve the kitting and delivery processes.

• Increase inventory accuracy.

• Reduce inventory levels and associated carrying costs.

• Increase service level of the storeroom.

• Improve profitability.

7.2 SPARE PART MONITORING SYSTEM

Before starting a spare part management initiative, a key performance indicator (KPI) and key
activity indicator (KAI) monitoring system must be set up to report actual results on a monthly
basis. Specific KPIs, KAIs and target levels must be defined annually for each factory.

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Spare Part Management | Spare Part Monitoring System

Illustration
The minimum standards for monitoring KPIs and KAIs for each factory.

KPI Service Level %

Number of requisitions on-time in-full

Formula Service Level % = x 100
Number of total requisitions

KPI – Service Level %

100%

99%

98%

97%

96%

95%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

KPI Month End Inventory Value (local currency and euro)

Formula Month End Inventory Value = ∑(Quantity × Purchase value)n

KPI – Month End Inventory Value

3.0

2.5

2.0

1.5

1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Spare Part Management | Spare Part Monitoring System

KPI Number of Stock Turns

Annual consumption value

Formula Number of Stock Turns =
Inventory value average for last 12 months

Where:

Inventory value average for last 12 months = the sum of ending inventory
values for each of the last 12 months divided by 12.

KPI – Number of Stock Turns

1.40

1.30

1.20
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Comment Stock turns does work with spare parts inventory at an aggregate level, that
is, by applying the measure holistically across all items held in inventory. In
this way, stock turns is a measure of investment efficiency:

• A low stock turn indicates there may be a mismatch between the

total value held and the value used. Understanding why requires a
root cause analysis (RCA), which is assisted by having clearly defined
stock categories.

• A high stock turn indicates the total investment level is more in line with
the usage level.

Example At one tea factory, the consumables stock turns were trending lower than the
factory target of >1. The percentage of slow moving consumable components
averaged 60 percent, which was higher than expected. Based on a RCA, belts,
chains, cams, nuts and bolts were identified as the typical slow moving parts.
By applying the right stock management approach to these parts, the
consumables stock turns are now trending closer to the factory target.

Stock Turns Consumables Times / year

0,88

0,87
Dec Jan Feb Mar Apr

Ideally, the number of stock turns should be 4 for consumable and 2 for
repairable spare parts.

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Spare Part Management | Spare Part Monitoring System

KAI Inventory Accuracy %

Number of parts hit

Formula Inventory Accuracy % = x 100
Number of parts counted

Where:

Hit = physical count shows both quantity and location are identical to
the system.

No Hit = physical count shows either or both quantity and location are
different than the system.

KAI – Inventory Accuracy %

100%

98%

96%

94%

92%

90%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

KAI Slow Moving Parts % of Total Inventory Value

Slow moving value

Formula Slow Moving Parts % = x 100
Total value of parts in storeroom

Where:

Slow moving value = the month end inventory value of items that have been
in the storeroom more than 120 days.

Total value of parts in storeroom = the total month end inventory value for
the storeroom.

KAI – Slow Moving Parts % of Total Inventory Value

45%

40%

35%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Spare Part Management | Seven Steps of Spare Part Management

7.3 SEVEN STEPS OF SPARE PART MANAGEMENT

There are seven major steps of spare part management that can help the PM team move
from a state of chaos in the storeroom to a well-organised spare part system. The spare parts
storekeeper should strive to achieve optimal quantities of each item, 100 percent inventory
accuracy, and minimal time to find and deliver spare parts to breakdown locations.

The steps start with classifying and stratifying spare parts in order to define the right
management approach for each part. Then, the optimal quantities are calculated for parts and
visual management techniques are implemented in the storeroom. Next, spare part management
is computerised and synchronised, which can be done by adding a function-specific module to a
computerised maintenance management system (CMMS). The final step is taking a proactive
approach to standardising the spare parts as much as possible, which is the Early Equipment
Management (EEM) Pillar approach, and also standardising the inventory management processes.

Illustration
The seven steps of spare part management.

Step 7 Standardise spare parts as much as possible with EEM

Establish a computerised spare parts management

Step 6
synchronising it with TBM & CBM

Step 5 Establish a visual management system at the storeroom

Determine quantity of each

Step 4
spare part to keep

Step 3 Put spare parts in order

Targets
Step 2 Establish spare parts policy
Guarantee availability
Guarantee low level of stock
Step 1 Sort out spare parts

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Spare Part Management | Seven Steps of Spare Part Management

7.3.1 Step 1: Sort Out Spare Parts

In order to sort out the real necessary parts, in step 1 all of the spare parts are listed and then
classified into one of three categories: 1) in use, 2) slow moving, or 3) obsolete.

Action
1. In use Necessary Manage correctly
and optimise

Yes

Total spare 2. Slow moving

parts >120 days in Evaluate Necessary?
inventory

No

3. Obsolete: no
future use Unnecessary Write off
expected

Slow Moving and Obsolete

Identify the slow moving and obsolete spare parts:

• Slow moving is defined as parts that have been in inventory more than 120 days and there is
still a potential to use them (i.e. existing equipment may need these parts). These parts are
evaluated to determine whether they are necessary (move to in use category) or unnecessary
(move to obsolete category).

• Obsolete is defined as parts where no future use is expected (i.e. existing equipment does not
use these parts). After review and approval by appropriate personnel, obsolete parts should be
properly disposed and written off.

In Use

The remaining spare parts default to the in use category, but they should be reviewed and any
discrepancies resolved. In use parts should be managed appropriately by the team, starting with
the maintenance planner and pillar lead, to optimise their inventory levels.

7.3.2 Step 2: Establish Spare Parts Policy

In step 2, the focus is to start defining a spare part management policy. The objective of step 2 is to
analyse usage and identify the most critical and frequently used spare parts. This policy definition
process continues in step 3 where stock optimisation strategies will be developed.

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Spare Part Management | Seven Steps of Spare Part Management

[Link] Assign Spare Parts to a Category

The initial activity is to assign spare parts to one of three categories: 1) repairables, 2)
consumables - technical, or 3) consumables - non technical. The performance of each
category is tracked independently because their behaviours are different. For example,
repairables have lower stock turns than consumables.

Illustration
Types of spare parts in each category:

1
Repairables: spare parts that can be repaired and reused such as gearboxes,
pumps and motors.

2 Consumables - Technical: spare parts that must be disposed after their use such
as belts, chains, cams, nuts and bolts.

3 Consumables - Non Technical: spare parts such as cleaning supplies, chemicals,

personal protective equipment, tape, batteries and tools.

[Link] Classify Spare Parts Based on Usage or Value

Within each category, spare parts are then classified using ABC and / or XYZ analysis. Typically,
ABC analysis is used where the total number of spare parts is a concern, while XYZ analysis is
used where the total financial value of spare parts is a concern. In some situations, both
analyses may be developed for a category.

The goals are to identify critical components and get a clear breakdown of the most
frequently used and most high-value parts, so a cost effective plan for replenishing
inventory can be developed.

ABC Analysis

In ABC analysis, each spare part is labeled A, B or C based on usage:

• A parts make up about 80 percent of usage, but account for 20 percent or less of
inventory stock.

• B parts make up about 15 percent of usage, but account for about 30 percent of
inventory stock.

• C parts make up about 5 percent of usage, but account for about 50 percent of
inventory stock.

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Spare Part Management | Seven Steps of Spare Part Management

Illustration
It generally holds true that 80 percent of repairs are completed using just 20 percent of the
available parts. The breakdown looks similar to this graph, where the x-axis represents the
percentage of parts and the y-axis represents the percentage of use.

100

90
C parts
80
B parts
70

60

50
A parts
40

30

20

10

0
0 10 20 30 40 50 60 70 80 90 100
Percentage of parts

XYZ Analysis

XYZ analysis is a variation of ABC analysis, but it focuses on value instead of usage.
In XYZ analysis, each spare part is labeled X, Y or Z based on inventory value:

• X parts make up about 80 percent of inventory value, but account for 20 percent or less of
inventory stock.

• Y parts make up about 15 percent of inventory value, but account for about 30 percent of
inventory stock.

• Z parts make up about 5 percent of inventory value, but account for about 50 percent of
inventory stock.

After completing these analyses, all of the spare parts will be categorised into high-, medium-
or low-usage classes (A, B, C respectively) and / or high-, medium- or low-value classes (X, Y, Z
respectively). Plans can then be developed to optimise inventory levels for the most frequently
used and most high-value parts.

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Spare Part Management | Seven Steps of Spare Part Management

Examples
These examples show the results of an ABC analysis developed by the Saint-Petersburg Tea
factory team. Spare parts in the repairables and consumables - technical categories were
classified based on four clearly defined, multivariable criteria.

Repairables and Consumables - Technical Classification Criteria

Classification Criteria
Repairables & Consumables Technical

2. Machine 3. Component
1. Unit cost 4. Lead time
criticality classification
High, medium, low High, medium, low High, medium, low High, medium, low

Spare Part Multivariable Criteria

Class Unit Cost Machine Criticality Component Lead Time*

Classification

High Unit Cost >= AA class machines from A class classification LT >=60 days
Avg Unit Cost WCM machine classification from machine ledger
Reactive phase: CD class When this component
Preventive and Proactive breaks down, the
phases: CD + PQCDSM machine breaks down
class

Medium Unit Cost >= A class from WCM machine B class classification LT >=14 and
50% of Avg classification from machine ledger <60 days
Unit Cost and Reactive phase: CD class Even if the equipment
<Avg Unit Cost breaks down, its impact
Preventive and Proactive
phases: CD + PQCDSM is limited
class

Low Unit Cost < B & C class from WCM C class classification LT <14 days
50% of Avg machine classification from machine ledger
Unit Cost Reactive phase: CD class Breakdown
Preventive and Proactive maintenance can be a
phases: CD + PQCDSM good solution without a
class problem

* Lead-time criteria are defined based on the factory’s current situation (e.g. geographical position, close proximity to
suppliers, etc.). More stringent criteria should be applied as the factory progresses through the WCM journey (e.g. High
>=30 days, Medium >=5 days and <30 days, Low <5 days).

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Total Score Calculation

For the total score calculation, more weight was assigned to unit cost and machine criticality in
order to prioritise spare parts that have a higher impact on service and inventory KPIs. The total
score for each part was calculated as:

Total Score = Column 1 x Column 2 x Column 3 x Column 4

1. Unit Cost 2. Machine Criticality 3. Component Class 4. Lead Time

Class Value Class Value Class Value Class Value

High 10 High (AA) 10 High (A) 5 High 5

Medium 5 Medium (A) 5 Medium (B) 3 Medium 3

Low 1 Low (B & C) 1 Low (C) 1 Low 1

Final Result
The final result was identification of the most critical and frequently used spare parts.

Component Machine
Unit cost
classification criticality Repairables
criteria
criteria criteria

#in Catalog Marks Supplier Functionality Unit Cost Storeroom Type

Criteria Marks

B406072 H (A) H BFB Mechanical H TMK REP

B424168 M (B) M BFB Mechanical M TMK REP

B461729 L (C) L BFB Mechanical L TMK REP

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Spare Part Management | Seven Steps of Spare Part Management

7.3.3 Step 3: Put Spare Parts in Order

In step 3, the process of defining a spare part management policy continues from step 2. Now
the main activities are to determine where in the storeroom each spare part will be located,
determine the layout of the shelves, and then put the parts in order. Spare parts must be stored
in dust free areas to avoid potential breakdowns after parts are installed on production lines.

If the Spare Part Management module has been implemented in a CMMS, it will be much easier
and quicker to locate spare parts in the storeroom. One great feature is the stores parts locator
that displays on the screen an item’s exact location in the storeroom simply by inputting the full
SAP number or a description.

Example
An example of the stores parts locator from the Port Sunlight team. The result from a search for
SAP number 5000137150 lists where it is located [Downstairs Area 1 (yellow), Aisle B, Rack 63,
Section 6, Shelf 3 (red)]. The layout map shows where it is located in the stores.

Stores Parts Locator Instructions

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Spare Part Management | Seven Steps of Spare Part Management

7.3.4 Step 4: Determine Quantity of Each Spare Part to Keep

In step 4, there are three key activities:

1. The replenishment method is selected based on spare part class and maintenance type.

2. The necessary quantity to keep is determined based on reorder calculations.

3. The priorities for reducing inventory values are defined based on Pareto analysis.

[Link] Select Replenishment Method

A cost effective plan for replenishing inventory balances the expense of storing parts with having
parts available to perform maintenance. It also minimises “stock-outs”, where needed spare
parts are unavailable.

Commonly used replenishment methods include:

• Just-in-Time (JIT). Spare parts are ordered based on the preventive maintenance calendar for
condition based maintenance (CBM) and time based maintenance (TBM), a specific project, or
a shutdown event. All of the following conditions must be met to use this method for a part:

Has a well-known wear pattern,

Has attained and sustained zero breakdowns, and
Is supplied by a vendor who is a strategic partner, is highly reliable (i.e. right quantity,
right quality and on-time deliveries) and is highly responsive (i.e. short response and LTs).

• Reorder Point (ROP). Spare parts are held in inventory and reordered when the inventory
balance reaches a specific trigger point.

• Two-Bin System. Spare parts are held in inventory in two separate bins with each bin holding
a predetermined quantity of parts. Once the first bin is completely empty, the second bin is
used and an order is placed for the required amount to fill the empty bin. The quantity held
in the second bin is the safety stock plus the demand quantity during the order LT.

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Spare Part Management | Seven Steps of Spare Part Management

Illustration
There is a relationship between spare part class, maintenance type and recommended
replenishment method. Maintenance types are time based (TBM), condition based (CBM),
inspect and repair (I&R) and breakdown maintenance.

Spare Part Class Maintenance Type Recommended Replenishment

(from Multivariable Method (based on Spare Part
Classification) Class & Maintenance Type)

Condition Based Just-in-Time

A Time Based
Inspect & Repair
Just-in-Time
Reorder Point

Condition Based Just-in-Time

B Time Based
Inspect & Repair
Breakdown
Just-in-Time
Reorder Point
Reorder Point

Time Based Reorder Point

C Inspect & Repair
Breakdown
Two-Bin System
Two-Bin System

[Link] Determine Necessary Quantity to Keep

The diagram shows what is called a “saw tooth curve”, which illustrates how inventory is
depleted and replenished over time. The black line represents the quantity in inventory for a
particular spare part. As time passes, inventory is depleted. When inventory reaches the ROP,
an order is placed to replenish it. If inventory reaches zero, there is a stock-out. When the
replenishment order is received, inventory approaches its maximum level.

Illustration
A “saw tooth curve” of inventory depletion and replenishment.

Max inventory Cycle time

level

Reorder point

Lead time

Time

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Spare Part Management | Seven Steps of Spare Part Management

For spare parts replenished using the ROP and two-bin system methods, the necessary
quantity to keep on hand is based on three calculations: ROP, reorder quantity (ROQ) and
economic order quantity (EOQ).

Reorder Point

Determining an optimal ROP requires having the following data for a spare part.

• Lead time - how long it takes to get a shipment of parts delivered.

• Cycle time - the amount of time between shipments.

To avoid stock-outs, a minimum and a maximum inventory level should be established for
each part:

• The minimum inventory is the fewest number of a given part that can be on hand at any
one time.

• The maximum inventory is the largest number of a given part that can be accommodated.

• The combination of knowing if the part is critical and what the LT is provides basic information
to determine a minimum inventory level.

Reorder Quantity

The Poisson distribution is used to determine the ROQ for a spare part based on its consumption
pattern and desired customer service level. The consumption pattern is analysed using a
minimum of 12 months of data, but ideally 24 to 36 months would be used if readily available.

e -µ µx
The formula for customer service level is: p =
x!

Where:

p = Customer service level or it could be interpreted as the probability of consuming x (= ROQ) or

less parts during the LT.

e = 2.7183.

µ = Average monthly consumption.

x = Quantity of spare part to keep to provide a service level of P.

Hint Although we are pursuing 100% availability, use customer service (p) level = 98% for
your first parameter definition cycle.

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Spare Part Management | Seven Steps of Spare Part Management

Economic Order Quantity

EOQ is the optimal quantity to order for a spare part based on its annual demand, the cost to store
it, and the fixed cost to reorder it.

2(annual demand)(fixed order cost)

EOQ is represented as: EOQ =
(annual storage cost)

All of these calculations can be tedious and prone to human error when done manually.
However, a CMMS with inventory management features can automate them. The CMMS provides
the information necessary to make decisions about optimal reorder points and quantities. This,
in turn, can help factories decrease their inventory levels and save money over time. It is very
important for the spare parts storekeeper to calculate the three formulae - either through a
CMMS or manually.

[Link] Define Prioirities

The last activities in step 4 are to:

• Define priorities for inventory reduction opportunities.

• Develop a more sophisticated analysis to further stratify spare part inventory.

• Create a Pareto analysis to visualise the opportunity for each spare part.

Define Priorities for Inventory Reduction Opportunities

Priorities are defined for inventory reduction opportunities based on the opportunity value for
each ABC or XYZ classification. The classes of inventory that have the highest opportunity values
are prioritised to pursue.

There are many different ways to create inventory reduction opportunities as follows:

• Change the replenishment method.

• Change the ROP and / or ROQ based on formulae recalculations.

• Reduce the LT by changing to local suppliers, negotiating faster delivery from existing
suppliers, and implementing a Perfect Engineering Stores (PES) programme.

• Reduce the unit cost by changing to local suppliers and implementing Unilever scale PES.

• Reduce component consumption through breakdown reduction.

• Reduce component consumption through corrective maintenance (PM Steps 4, 5 and beyond).

• Reduce number of spare parts through standardisation with EEM Pillar in WCM.

• Implement vendor-managed inventory (VMI).

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Spare Part Management | Seven Steps of Spare Part Management

Example
An example of spare part inventory reduction opportunities by ABC class. Both A class and C class
spare parts were prioritized to pursue based on their opportunity values.

Spare Parts Inv. Reduction Opportunity by Class (THB) to Achieve Stock Turns = 3

3,000,000

3,000,000
490,520
2,500,000 21,548

2,000,000 1,300,157
3,156,897
1,500,000

1,000,000
1,344,673
500,000
OH Inventory A spares Opp B spares Opp C spares Opp BM-OH Inv.

Develop Analysis to Further Stratify Spare Part Inventory

In step 1, spare parts were initially classified into 1) in use, 2) slow moving > 120 days, or 3)
obsolete. And in step 2, spare parts were assigned into repairable and consumable (technical or
non technical) types. In step 4, a more sophisticated analysis is developed to further stratify the
spare part (repairable and consumable) inventory. This stratification helps to manage and monitor
the continued progress of inventory optimisation.

Repairable inventory is stratified based on time in and movement through inventory.

The categories are less than 3 months, less than 6 months, less than 1 year, slow moving
more than 1 year, no moving, and obsolete.

Consumable inventory is stratified based on time in inventory. The categories are less than
1 month, less than 3 months, and less than 6 months. At step 4, consumables that were in
inventory more than 6 months should have already been eliminated.

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Spare Part Management | Seven Steps of Spare Part Management

Illustration
Stratification of repairable and consumable inventory into categories based on time in and
movement through inventory.

Less than 3 months inventory

Less than 6 months inventory

Less than 1 year inventory

Repairable
Slow moving (>1 year) inventory

No moving inventory
Total
Spare Part Obsolete inventory
Inventory

Less than 1 month inventory

Consumable Less than 3 months inventory

Less than 6 months inventory

Create Pareto Analysis to Visualise Opportunity

A Pareto analysis is created to visualise the opportunity value for each spare part. The parts
are plotted starting with the highest opportunity value on the left and going in descending order
across the chart. This shows what order the spare parts will be pursued starting on the left. To
achieve 100 percent of the reduction opportunity, all of the necessary optimisations would have
to be done.

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Spare Part Management | Seven Steps of Spare Part Management

Example
An example of a Pareto analysis of the inventory reduction opportunity by spare part from the
Minburi factory. The vertical bars represent the value of inventory reduction opportunities. The
solid curved line, which represents the cumulative reduction, meets the 100 percent level on the
far right at the end of the last spare part.

Pareto - Inventory Reduction Opportunity

120000 100%
90%
100000
80%
70%
80000
60%
60000 50%
40%
40000
30%
20%
20000
10%
0 0%

Total Opp Cumulative %

7.3.5 Step 5: Establish a Visual Management System at the

Storeroom
In step 5, the visual management system is defined. Visual management is important in helping
maintenance personnel accurately locate spare parts as quickly as possible. Some practical
applications of visual management include:

• Banner with the list of all components in the main rack.

• Description of each part number with the respective picture on the shelf to avoid mixing up.

Illustration
Banner with component list Description, part number and picture to avoid mixing up

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Spare Part Management | Seven Steps of Spare Part Management

7.3.6 Step 6: Establish a Computerised Spare Parts

Management
In step 6, the computerised spare part management system is setup and synchronised with TBM
and CBM. After achieving and maintaining zero breakdowns, JIT replenishment methods can be
used for those items under TBM or CBM. Spare parts are ordered to arrive at the factory just in
time to perform a TBM or CBM activity, considering the LT and reliability of the supplier.

To establish a JIT replenishment method, a computerised spare part management system is

highly recommended. This will improve precision and allow for more frequent controls.

7.3.7 Step 7: Standardise Spare Parts as Much as Possible

with EEM
In step 7, spare parts should be standardised as much as possible with the EEM activities that are
conducted at the time of equipment design, equipment installation and corrective maintenance.
Additionally, standardised processes that improve inventory accuracy should be implemented.

Example
An example from the Saint-Petersburg Tea factory where 6 parts (pneumatic valves) were
standardised into one part:

BEFORE - 6 items AFTER - 1 item

Pneumatic Pareto 2015

600
B\C: Before 2178€. After 435€
500 Stock reduced by 91%
6 units replaced by 1
400

300

200

100

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Spare Part Management | Best Practices and Barriers to Implementation

Processes to Improve Inventory Accuracy

The other aspects of inventory management involve implementing processes to improve accuracy.
Once the ABC or XYZ analysis is completed, the spare parts storekeeper can perform cycle counts
on specific days. Cycle counts are basic audits of a specific section of inventory such as class
A parts.

To fully control and account for maintenance costs and to ensure reliable maintenance practices,
control of maintenance inventories must be in place. CMMS implementation becomes even
more critical.

With a fully integrated CMMS, parts can be selected from a piece of equipment / asset or bill
of materials (BOM) and pulled straight to the work order (WO) plan. The CMMS automatically
validates the selected parts against the Inventory Management module and, if valid, adds the
required quantity to the WO. It also informs the maintenance planner if a part is not valid or is
currently unavailable in the required quantity.

The system should also notify the maintenance planner if there is an open purchase requisition
or purchase order for a part and the quantity on each. To ensure this information is available,
there must be an interface between the Spare Part Management and Inventory Management
modules and the Purchasing and Receiving module. Systems automatically generate purchase
requisitions for parts when the quantity required or reserved causes the current balance on hand
to drop to or below the ROP.

Reports displayed include quantity on-hand, parts allocated, parts on-order, inventory location,
and ROPs. Multiple vendors can be assigned to each item to facilitate spare part purchasing.
Parts are issued from inventory to the WO on which they were planned and unplanned. Unused
parts may be returned to inventory with the quantity and cost of the returned items being
automatically credited to the WO and / or the account number associated with the WO.

7.4 BEST PRACTICES AND BARRIERS TO

IMPLEMENTATION
Key best practices in spare part management and barriers to implementation of best
practices include:

Best Practice Barriers to Implementation

Implement and sustain lay-up maintenance to ensure Storage conditions are not known for rotating stock.
all rotating stock is maintained under a preventive
Known storage conditions are not maintained.
maintenance programme (e.g. belts and gaskets that
are affected by dust, dirt and temperature or humidity Standards for lay-up maintenance are not captured
changes). in SOP.

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Spare Part Management | Best Practices and Barriers to Implementation

Best Practice Barriers to Implementation

An approved supplier list which permits the Approved supplier list is missing, increasing the risk
implementation of VMIs based on partnership that spare parts are not purchased effectively and /
arrangements and trust. or not available when required (e.g. EOQ and VMI not
in place).
Lack of ABC and XYZ analyses fails to identify parts
for VMI.
Little effort in building or maintaining supplier
relationships.
There is no rating system for vendors or suppliers.

A clear stock management approach which includes: There is no clear approach to stock management:
Maintenance of equipment BOMs. BOMs are not available and / or not maintained,
A clear receiving process. resulting in risk of stock-outs and obsolescence.

Cycle counting as part of daily routine. Stock is not added to the system on receipt.

A defined repair and return process. ABC and XYZ classifications or counting by selected
area are not in place.
Adoption of WOs for all maintenance.
Repairs and returns are not accurately recorded.
Application of FIFO (first-in, first-out).
Lack of WOs hinders control of inventory and
Identification and removal of obsolete parts. knowledge of usage.
Appropriate salvage of obsolete and scrapped parts. Spare parts are issued without reference to FIFO.
There is no management of obsolete or scrapped
parts within the monthly accounting process.

The stores provide: The location cannot be locked and access cannot be
controlled.
A locked and physically secure location.
5S is not applied, which discourages those booking
A leading example of the application of 5S. out spares to follow best practice and adopt WCM
An optimised layout that ensures efficiency and ways of working.
effectiveness. Inventory is “held” off system in lockers and tool
boxes.

Available systems are used effectively to: Failure to effectively use systems results in:
Manage location of inventory and tools. Inaccurate inventory and consequent impact of
emergency purchase orders and associated costs.
Manage stock data.
Failure to monitor supplier performance raises risk
Provide inputs for publication of dashboards
that inventory will not be supplied when required.
measuring KPIs.

All processes are mapped and have been analysed to Without the mapping of all processes:
streamline the workflow process: Departments do not communicate and work
RACI (Responsible / Accountable / Consult / Inform) effectively with other departments.
has been defined to assign tasks to functions. Individuals are unclear about their roles and
Step definitions have been developed. responsibilities and the skills required to perform
these.
Job descriptions exist with appropriate training plans.
Kitting and delivery of planned work is not practised.
Kitting is in place for all planned work.

Manning levels are optimised. Lack of resources increases the risk of short cuts in
inventory management and potential stock-outs.
Superfluous resources increase risks that clarity of
roles and responsibilities will be ignored and no one
will be held accountable.

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Spare Part Management | Role of Spare Parts Storekeeper

7.5 ROLE OF SPARE PARTS STOREKEEPER

What is the role of a spare parts storekeeper in supporting maintenance personnel? The
storeroom is where the maintenance technicians come, expecting to find the parts they need to do
the necessary repairs. The spare parts storekeeper is running a business within a business and
has the ultimate responsibility to provide the correct items, in good condition, in the right quantity,
and of good quality.

The following are key responsibilities of the spare parts storekeeper:

• Maintain 5S (Sort, Straighten, Shine, Standardise, Sustain) of the storeroom in order to

improve productivity and minimise losses.

• Plan the storeroom layout for efficient order picking and inventory care.

• Organise and manage staffing levels to ensure adequate support for maintenance.

• Work closely with planning and scheduling personnel.

• Provide inventory reporting to related departments.

• Monitor minimum and maximum levels, ROP and ROQ information.

• Manage inventories by ABC or XYZ classifications.

• Use best practices to manage inventory.

• Coordinate activities with other disciplines (purchasing, accounting, engineering, operations,

and management) to ensure required support for maintenance activities.

• Provide monthly KPI reports to the maintenance manager.

• Coordinate orders for special parts with the maintenance team.

• Provide reports to management such as inventory valuation reports, negative inventory

reports, cycle count variances, and obsolescence.

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 8 COMPUTERISED MAINTENANCE
MANAGEMENT SYSTEM

8.1 MANUAL MAINTENANCE SYSTEM ................................................... 163

8.2 FUNCTIONALITY OF A CMMS ............................................................ 164

8.3 WORK ORDERS IN A CMMS ............................................................... 166

8.3.1 Maintenance Request ......................................................................... 168
8.3.2 Preventive Maintenance and Predictive Maintenance .................................. 169

8.4 WHAT A CMMS DOES ......................................................................... 170

8.4.1 Maintain, Sort, Summarise and Display Data ........................................... 170
8.4.2 Automate and Control a Reliable Preventive Maintenance Programme ........... 172
8.4.3 Automate and Control a Reliable Inventory Replenishment Programme .......... 173
8.4.4 Provide Accurate Job Scheduling Based on Resource Availability ................... 173

8.5 WHO USES A CMMS AND HOW? ........................................................ 174

8.6 SAP APPENDIX ................................................................................... 175

8.6.1 SAP-PM Planning and Scheduling Sub-steps ........................................... 175
8.6.2 SAP-PM Inventory Replenishment Activities ............................................ 178

nctionality Structure (dated October 2016)

Maintenance Request
(Tag/De-tagging,
Breakdown Management)

Preventive and
Predictive Maintenance
(TBM, CBM)

WORK ORDER Database &

Spare Part MANAGEMENT Reporting 162
Management (Inventory
Management)
Computerised Maintenance Management System | Manual Maintenance System

8 COMPUTERISED MAINTENANCE
MANAGEMENT SYSTEM
Introduction
A computerised maintenance management system (CMMS) is often perceived to be just a way to
schedule maintenance work. This is because many people only have experience using manual
paper systems for maintenance management. While preventive maintenance scheduling is
normally part of a CMMS, most systems are capable of much more. Virtually all aspects of
maintenance work can be managed by integrated CMMS software packages. Today, CMMSs are
increasingly used to manage and control the maintenance of plant and equipment in modern
manufacturing.

8.1 MANUAL MAINTENANCE SYSTEM

A typical manual maintenance system is paper based. Many man-hours are required to properly
support all of the key tasks required for any reasonably sized system.

Illustration
Key Tasks Required for Manual Maintenance Systems

Key Task Task Description

Retrieve Asset Each asset has a history card (or file) that has a detailed asset description,
History Card information on maintenance procedures required, periodic maintenance
required, trades required, last maintenance date, and perhaps some
out-of-date information about a previous breakdown. A person must find
and retrieve the correct history card.

Identify Maintenance To determine what maintenance is due, a person must look through every
Due card, compare each of the last maintenance dates to the periodic
maintenance requirements, and select the maintenance items that are due.

Issue Work A person must select from the history card the appropriate procedures for the
Instructions maintenance work that is due, and then issue work instructions.

Update Asset History After the work is completed, a person must retrieve the correct history card,
Card update it with details on the maintenance performed, and replace the card in
its slot.

Performing these tasks manually can be a full-time job for one or more people, and mistakes can
happen frequently at multiple points in the process. It is easy to understand why more and more
manufacturing organisations are implementing CMMSs.

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Computerised Maintenance Management System | Functionality of a CMMS

8.2 FUNCTIONALITY OF A CMMS

Many vendors sell their CMMS software in modules, so manufacturing organisations can select
the modules that best meet their specific requirements. For any CMMS, a wide range of statistical
data and reports should be readily available. For example, it should report the number of times a
machine has broken down for a specific fault in a given time period.

Illustration
These modules are generally available in CMMSs. The key functions must be considered when
deciding on a specific module. Note the functionality is normally grouped into subsystems for
specific activity sets within the CMMS. These subsystems may include, but are not limited to, the
ones presented here:

Module Key Function

Asset Management Stratifies all equipment from highest hierarchy level to lowest component level.

Labour Management Manages availability of technicians’ work hours.

Spare Part Management and Classifies spare parts including:

Inventory Management ABC and XYZ analyses.
Reorder point (ROP), reorder quantity (ROQ) and economic order quantity
(EOQ) calculations.
Spare part value control.
Inventory accuracy and service level.

Work Order Creation, Creates, executes and completes work orders (WOs).
Execution and Completion Develops preventive and predictive maintenance plans for time based
Preventive Maintenance and maintenance (TBM) and condition based maintenance (CBM) strategies,
Predictive Maintenance and then schedules maintenance.
Maintenance Requests Creates and manages tagging / de-tagging and emergency work order
maintenance requests.

Work Order Planning and Creates a schedule (calendar) of maintenance activities for each piece of
Scheduling equipment, component and open tag.
Works in collaboration with the Work Order Creation, Execution and
Completion module.
The two modules can be combined into one Work Order Management module.

Purchasing and Receiving Generates purchase orders (POs) for spare parts and manages receiving of
goods for stock.
Works in collaboration with the Spare Part Management module.

Database and Reporting Provides feedback for the planning and scheduling system and facilitates
analyses for improvement.

Engineering Data-Drawing- Captures and manages all drawings, AutoCad® files, and PDF and video
Document Management System documents related to asset engineering from configuration down to the
(ED3MS) component level.

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Computerised Maintenance Management System | Functionality of a CMMS

Note For Unilever CMMS initiatives, User Requirement Specifications (URS) have been
defined in compliance with WCM requirements. These specifications can be used to
implement CMMS for factory maintenance initiatives.

URS Functionality Structure (dated October 2016)

Maintenance Request
(Tag/De-tagging,
Breakdown Management)

Preventive and
Predictive Maintenance
(TBM, CBM)

WORK ORDER Database &

MANAGEMENT Reporting
Spare Part Management
(Inventory Management)

Labour
Management

Asset Management
(Part/Component
Level, Location)

Engineering Data-Drawing-Document Management System (ED3MS)

(Machine ledger, SOP, SMP/V-SMP, digital images, scanned documents, sketch, manual book,
technical drawing, lay out/mapping)

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Computerised Maintenance Management System | Work Orders in a CMMS

8.3 WORK ORDERS IN A CMMS

Work orders (WO) are the backbone of the CMMS.

WOs define: WOs provide the means to report:

Piece of equipment / asset to be worked on. What was actually done and by whom.

Activities to be performed. When it was done and how long it took.

Procedures to be followed. Whether or not the work was completed.

Skills and crafts required to perform the If call-back work was required.
activities.

Estimate of time required for each skill and If there was time lost.
craft.

Spare parts and tools required. Any comments about the work.

For many systems, codes can be input to specify the causes of problems and the resulting effects
such as a motor overheating that resulted in a bearing replacement.

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Computerised Maintenance Management System | Work Orders in a CMMS

Example
Example from a SAP-PM (Plant Maintenance) Work Order Management module, which is only one
of the Work Order module solutions available on the market.

Note SAP-PM does not include all of the necessary CMMS modules defined in the URS
(dated October 2016). Before selecting a CMMS vendor, each factory must determine
which modules are required for their specific operations and then evaluate vendors who
offer all of those modules. The Global Manufacturing Excellence Manager responsible
for Professional Maintenance is the best source for vendor information.

All PM activities (PM01, PM02, PM03) have WO as document, and contain all detailed information

PM Activities Notification & WO Creation Information

PM01 (Planned Maintenance) IW21 5W1H & Root cause
PM02 (Breakdown Maintenance) IW31 Part, internal & external service
PM03 (Abnormality / Tag) Cost (Plan vs Actual)

1 Notification Creation 2 WO Creation

Notification creation use IW21 WO creation use IW31

All information 5W1H, Root Cause All information part consumption,
can be accommodated in notification external service, internal service
can be accommodated in WO

4 Notification & Technically 3 Part & Service Allocation

Complete (Noco & Teco)

All activities will be done after WO is Both part / service cost can be allocated in WO
finished to be set in Notification Complete WO shows plan vs actual cost calculation
(Noco), and Technically Complete (Teco)

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Computerised Maintenance Management System | Work Orders in a CMMS

Most CMMSs allow multiple types of WOs, which can have different names in different systems.
But the basic types are:

• Maintenance request.

• Preventive maintenance and predictive maintenance.

8.3.1 Maintenance Request

Maintenance request types are tagging / de-tagging and emergency work order (EWO).

Tagging / De-tagging

A maintenance request to fix an abnormality in a piece of equipment / asset that occurred during
an operating or non-operating period can be issued as tagging. The tag can be issued by the
operator as owner of the asset or by the technician who observed the abnormality. De-tagging is
when allocated labour is assigned to close the WO.

There are three types of tags that can be used in the CMMS:

• Safety, Health and Environment (SHE) Tag - This tag can be closed either by an operator or a
technician depending on the skill level required to complete the maintenance task.

• Maintenance Tag - This tag can only be closed by a technician because technical skills are
required to complete the maintenance task.

• Operator Tag - This tag can only be closed by the first-line manager responsible for that
production line.

Example

Safety, Health and

Environment - SHE Tag Maintenance Tag Operator Tag

Abnormality Tag Tag # Abnormality Tag Tag # Abnormality Tag Tag #

SAFETY, HEALTH & ENVIRONMENT Name MAINTENANCE Name OPERATOR Name
Date Date Date
Area / Line Priority A B C AM Step 1 2 3 4 5 6 7 AM Step 1 2 3 4 5 6 7
Machine Shift 1 2 3 Line Priority A B C Line Priority A B C
Machine Shift 1 2 3 Machine Shift 1 2 3
Safety and Health Environment

The work/machine must be stopped until unsafe condition is eliminated Abnormality Related to: Abnormality Related to:
Missing Quality defects Missing Quality defects
Broken Fasteners Broken Fasteners
What is it wrong (objects) Unsafe conditions
Worn out Transmission system Worn out Transmission system
Pedestrain / vehicles traffic Inadequate Backlash Pneumatic system Backlash Pneumatic system
Machine Missing Torn Hydraulic system Torn Hydraulic system
Building / infrastructure In poor conditions / damaged Obsolete Lubrication system Obsolete Lubrication system
Tools Not clean / not orderly Burned Electrical / Instrumentation Burned Electrical / Instrumentation
Emergency equipment Inadequate storage Loose or missing contact Insulation / Sealing Loose or missing contact Insulation / Sealing
Protective devices Restricted / confined space Abnormal noise Source of Contamination Abnormal noise Source of Contamination
Chemical issues Dust and dirt Hard To Access area Dust and dirt Hard To Access area
Electrical issues Leaking Corrosion / paint Leaking Corrosion / paint
Other Smashed / caught in Visual aids Smashed / caught in Visual aids
Other Other Other Other
Detailed abnormality description:
Detailed abnormality description: Detailed abnormality description:

Implemented solution: Implemented solution: Implemented solution:

Closing date: Closed by: Closing date: Closed by: Closing date: Closed by:
1st copy: Abnormality location 3rd copy: Tracking location 1st copy: Abnormality location 3rd copy: Tracking location 1st copy: Abnormality location

2nd copy: Maintenance Planner 2nd copy: Maintenance Planner 2nd copy: Tracking location

168
Computerised Maintenance Management System | Work Orders in a CMMS

Emergency Work Order

An EWO, or breakdown maintenance, is used to repair a reported failure of a piece of equipment

/ asset as soon as possible. The maintenance schedule is interrupted to repair an emergency
breakdown. The EWO process can also be used to perform root cause analysis on the failure and
apply effective countermeasures to reduce or eliminate the root cause.

CMMS Process for Maintenance Requests

A maintenance request can be either a paper document that is created by anyone who wants to
request maintenance or it can be input directly into the CMMS by the requester. With direct input,
some controls are built into the process. For example, when a piece of equipment / asset ID is
input, the CMMS validates the ID. If it is a valid ID, the CMMS automatically adds the description,
cost centre and physical location to the work request. This lets the requester verify the piece of
equipment / asset is the one that needs to be serviced.

The maintenance planner can review the work request before converting it into a WO. With most
CMMSs, the maintenance planner can change the ID if the requester input the wrong ID. Each
step or task may be for a specific skill / craft or for a specific work activity. Depending on the
CMMS, steps or tasks may contain multiple skills / crafts and each step or task may be for a
different ID. The costs charged to each step or task roll up to the WO.

Normally, the WO cannot be closed until all of the steps or tasks are closed. The information
maintained on the WO file varies across different CMMSs and may even vary between the types
of WOs within a CMMS. After the work is completed, actual spare parts used, actual hours
worked by craft / skill, and comments on the completion of the WO are included as feedback
for further analysis.

8.3.2 Preventive Maintenance and Predictive Maintenance

Preventive maintenance and predictive maintenance WOs are created automatically by the
CMMS based on the scheduled frequency of execution. The CMMS copies a standard preventive
maintenance plan into a preventive maintenance WO. Once copied, the preventive maintenance
WO is automatically added to the WO backlog. It is tracked and executed the same as other WOs.

The frequency of execution is time based or cycle based for preventive maintenance and
condition based for predictive maintenance. A simple example of preventive maintenance is
“change belts of case packing machine each two months or 1,000 operating hours”. A simple
example of predictive maintenance is “check belt tension each 1,000 operating hours to identify
if it should be changed”.

Repetitive WOs are similar to preventive maintenance WOs in that their plans are often
maintained on the same file as preventive maintenance plans. However, repetitive plans are
copied into WOs manually on demand instead of automatically by the CMMS. Repetitive WOs
are most often used for work such as a rebuild or overhaul of a piece of equipment / asset.

Preventive maintenance plans contain information very similar to a WO. These work plans are
associated to equipment / asset records and have a defined frequency for when they will be
executed. Normally, the preventive maintenance plan is automatically copied into a WO when
it is time to execute the maintenance or at some defined lead time.

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Computerised Maintenance Management System | What a CMMS Does

8.4 WHAT A CMMS DOES

Many CMMSs fail soon after implementation because they were badly specified. Quite often it is
not until after installation is completed that users realise their new system does not meet their
requirements. This is understandable. Typically, prospective users are consulted about what they
would like from the system. But quite often, they are not fully aware of what is actually available.

Before starting an initiative to implement a CMMS, please refer to the URS that has been
defined for Unilever CMMS initiatives. However, keep in mind that a CMMS can be used for
four key functions.

8.4.1 Maintain, Sort, Summarise and Display Data

One of the primary functions of a CMMS is to maintain, sort, summarise and display data for
personnel to review and make decisions. It stores large amounts of current and historical data.

A CMMS has many files containing thousands of records. However, changes made to a data field in
one CMMS file are automatically changed on every other file where that data field is maintained.
This ensures accurate and up-to-date data is always available. A CMMS can also quickly retrieve
information from many different records, combine the information, perform calculations, sort the
results, and present them in an organised format.

Most CMMSs provide many different selection and sort fields to organise data for display and
printing. You can tell the system what information you want to see and how you want to see it.
The CMMS also has input selection fields for producing summary displays and reports.

Analysis of Asset History

The analysis of asset history functionality is a key benefit of a CMMS. A CMMS can generate
reports that provide critical information for analysing equipment and asset repair histories.
Analysing the repair history for a single component can show breakdown trends, provide
information for estimating future breakdowns, and provide repair cost data for any time period.

Historical repair data includes what the problem was, where it occurred, when it occurred, what
caused the problem, the resulting effect, corrective action taken, resources used, how long the
repair took, and comments concerning these activities.

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Computerised Maintenance Management System | What a CMMS Does

Example
A CMMS can stratify all equipment from the highest hierarchy level down to the lowest
component level.

Mespack 1 Mespack 2 Volpak

Auto splicer Auto splicer Auto splicer

Unwinder Unwinder Unwinder

Pouch making Pouch making Pouch making

Bottom seal Bottom seal Bottom seal

Vertical seal Vertical seal Vertical seal

BOM vertical seal A BOM vertical seal A BOM vertical seal B

BOM vertical seal A BOM vertical seal B

Material-a Material-a Line

Material-b Material-b Machine

Material-c Material-X Equipment

BOM

Material

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Computerised Maintenance Management System | What a CMMS Does

Example
A CMMS can generate cost reports. This report is based on the type of maintenance (PM01:
Planned Maintenance, PM02: Breakdown Maintenance, and PM03: Abnormality / Tag) and area
from Unilever Skin Cikarang Indonesia:

November December

Plan Committed Actual Plan Committed Actual

SBU Tube

2510310 - Skin 3 - - - - - -

PM01 - - 22,449,068.00 2,412,972.00 - -

PM02 - - - - - -

PM03 3,000,000.00 2,980,601.00 - - - -

2510311 - Skin 4 3,000,000.00 2,980,601.00 22,449,068.00 2,412,972.00 - -

PM01 1,633,593.00 - 12,852,895.00 47,502,019.00 - -

PM02 - - - - - -

PM03 3,000,000.00 - 6,679,500.00 - - -

2510313 - Skin 7 4,633,593.00 - 19,532,395.00 47,502,019.00 - -

PM01 26,870,716.00 - 10,507,065.00 11,705,894.00 - -

PM02 - - - - - -

PM03 1,600,000.00 - 4,154,000.00 - - -

2510314 - Skin 8 28,470,716.00 - 14,661,065.00 11,705,894.00 - -

PM01 - - 22,162,600.00 13,493,055.00 - -

PM02 - - - - - -
PM03 - 17,697,177.08 11,344,704.00 - - -

2510315 - Skin 9 - 17,697,177.08 33,507,304.00 13,493,055.00 - -

PM01 - - 12,007,214.00 7,063,368.00 - -

PM02 - - 164,826.00 - - -

PM03 6,400,000.00 - - - - -

8.4.2 Automate and Control a Reliable Preventive

Maintenance Programme
Using a good preventive maintenance software package is a major factor in improving
maintenance performance and equipment reliability and in reducing maintenance costs. Once
the preventive maintenance plans and schedules are developed in the CMMS, it automatically
creates and schedules preventive maintenance WOs. It also automatically provides notifications
of preventive maintenance WOs not completed within their scheduled cycle.

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Computerised Maintenance Management System | What a CMMS Does

In the SAP-PM module, the Planning and Scheduling step has five major sub-steps:

A. General Planning and Scheduling.

B. BOM Creation & Part Assignment.

C. Task-list Creation.

D. Maintenance Item Creation.

E. Maintenance Plan Creation.

Refer to the SAP Appendix at the end of this section for additional information on these steps.

8.4.3 Automate and Control a Reliable Inventory

Replenishment Programme
The CMMS automatically creates purchase requisitions for stock inventory items based on either
defined or calculated reorder points. CMMSs differ in how they determine when a reorder point is
reached. The reorder point can be based on:

• Actual balance-on-hand quantities.

• Total WO requirement quantities.

• Total WO commitment quantities.

Many CMMSs allow an individual part to be tagged as to which method to use or to never create
an automatic requisition for a part. Whichever method is used, CMMSs consistently and accurately
create purchase requisitions.

Refer to the SAP Appendix at the end of this section for additional information on the SAP-PM
inventory replenishment activities.

8.4.4 Provide Accurate Job Scheduling Based on Resource

Availability
Manually scheduling jobs to be performed, especially when there is a large backlog of WOs, can
be difficult and tedious. The CMMS scheduling programme can schedule WOs based on such
criteria as WO priority, criticality of a piece of equipment / asset, WO type, requested completion
date, and origination date of the work request. A good scheduling software package can also
schedule based on availability of resources.

For example, the CMMS can match the required hours of all WOs on the planned schedule by
craft or skill against the available (i.e. unassigned) hours of each craft or skill for the scheduled
time period. It can also determine the availability of required spare parts for each WO. For the
schedule sequence established by priority, criticality and so on, the final schedule is based on the
availability of required spare parts and maintenance labour.

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Computerised Maintenance Management System | Who Uses a CMMS and How?

8.5 WHO USES A CMMS AND HOW?

While a CMMS is used by many departments, maintenance supervisors, planners and staff are
primary users. Maintenance supervisors use it to monitor maintenance performance, cost trends,
priorities and labour effectiveness. Maintenance planners use it for a variety of needs starting
with planning and scheduling activities. And maintenance staff use it for tasks such as receiving,
performing and completing.

Maintenance
Maintenance personnel use the CMMS to perform WO planning and initiation, WO and resource
scheduling, preventive maintenance planning, requisition of non-stock items, direct-buy parts
and services, analysis of asset history, craft utilisation, and budget preparation and tracking.

Engineering
Engineering personnel use the CMMS to plan projects, just as maintenance planners plan WOs.
They also use the CMMS to store and retrieve data on equipment specifications, drawing
references, and modifications to equipment / assets.

Production
Production personnel use the CMMS in several areas including monitoring scheduled downtime
and the status of work requests or WOs. They also use the CMMS to analyse failures primarily
through the cause codes that come directly from the lack of basic conditions and basic operations
of the production team.

Storeroom
Storeroom personnel who receive spare parts are active users. Through the CMMS, they receive
and issue spare parts and tools and also adjust inventory balances. Additional uses include parts
usage history, advance notice of parts requirements for planned work, automatic requisitioning
of parts to meet reorder / stocking requirements, purchase orders for non-stock items,
consolidation of requisitions for the same vendor to a single purchase order, receipts against
the purchase order, and storage and retrieval of material safety data sheets.

Accounting and Finance

The CMMS provides Accounting and Finance personnel with accurate maintenance cost data in
a consolidated format. Benefits of the CMMS are automatic allocation of costs and cost history
evaluation. It is very important to include Accounting and Finance personnel in any CMMS
implementation planning process, so early decisions can be made on how costs will be managed
within the CMMS. They help determine the hierarchy structures and cost roll-up levels. Their
input is also needed to determine cost centres and account codes.

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Computerised Maintenance Management System | SAP Appendix

8.6 SAP APPENDIX

8.6.1 SAP-PM PLANNING AND SCHEDULING SUB-STEPS

8.6.2 SAP-PM INVENTORY REPLENISHMENT ACTIVITIES

8.6.1 SAP-PM Planning and Scheduling Sub-steps

Additional information is provided for the five major sub-steps in the SAP-PM Planning and
Scheduling module.

Example
General Planning and Scheduling sub-step. There are five key activities in this sub-step.

SAP BOM Creation & Task-list Basic Start Date

1 Part Assignment 2 Creation 3 & call horizon
Planning and Stratify machine Create activity list Define basic start
Scheduling into BOM & Part of preventive operation of each
level. Set the maintenance based BOM.
maintenance BOM & individual
strategy (TBM, part, and frequency
General Planning & CBM). of activity.
A Scheduling

BOM Creation &

B Part Assignment
Maintenance Maintenance
4 Item Creation 5 Plan Creation
Task-list
C Creation
Connect Task-list Combine
Operation to Maintenance Item
Maintenance Item Funloc & BOM with basic start
D Creation location. operation (start
date) & call horizon.
Maintenance Plan
E Creation

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Computerised Maintenance Management System | SAP Appendix

Example
BOM Creation & Part Assignment sub-step. The preventive maintenance strategy (e.g. TBM, CBM)
must be set for each part inside the bill of materials (BOM).

SAP BOM Creation & Part Assignment

Planning and
Scheduling

General Planning &

A Scheduling

BOM Creation &

B Part Assignment

Task-list
C Creation

Maintenance Item
D Creation

Maintenance Plan
E Creation

Example
Task-list Creation sub-step. The task list is created for activities and spare parts required based
on the BOM.

SAP Task-list Creation

Planning and
Scheduling

General Planning &

A Scheduling

BOM Creation &

B Part Assignment

Task-list
C Creation

Maintenance Item
D Creation

Maintenance Plan
E Creation

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Computerised Maintenance Management System | SAP Appendix

Example
Maintenance Item Creation sub-step. The task list, functional location, equipment and assembly
(BOMs) are combined.

SAP Maintenance Item Creation

Planning and
Scheduling

General Planning &

A Scheduling

BOM Creation &

B Part Assignment

Task-list
C Creation

Maintenance Item
D Creation

Maintenance Plan
E Creation

Example
Maintenance Plan Creation sub-step. The basic start date of schedule and call horizon are set.

SAP Maintenance Plan Creation

Planning and
Scheduling

General Planning &

A Scheduling

BOM Creation &

B Part Assignment

Task-list
C Creation

Maintenance Item
D Creation

Maintenance Plan
E Creation

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Computerised Maintenance Management System | SAP Appendix

8.6.2 SAP-PM Inventory Replenishment Activities

SAP-PM inventory replenishment activities include setting the replenishment strategy and
assigning spare parts to WOs.

Example
Replenishment activities in SAP-PM.

Part

Convert into Material Code

Replenishment Strategy WO Allocation

1. Set Stock (PD) or Non Stock (ND) Spare Part can be assigned into WO to
2. Set minimum and maximum stock for PD generate plan and actual cost
3. For ND, order will be triggered by WO

178
9 WCM AND PROFESSIONAL MAINTENANCE

9.1 PROFESSIONAL MAINTENANCE IN WCM ......................................... 180

9.2 PRELIMINARY ACTIVITIES................................................................. 182

9.2.1 Building a Machine Ledger ................................................................... 182
9.2.2 Creating a Breakdown Map................................................................... 184
9.2.3 Developing a Breakdown Analysis .......................................................... 184

9.3 RESULTS FROM APPLYING WCM PM ................................................ 193

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WCM and Professional Maintenance | Professional Maintenance in WCM

9 WCM AND PROFESSIONAL MAINTENANCE

Introduction
Unilever maintenance teams have faced some challenges in learning and applying the World
Class Manufacturing (WCM) programme. The scope of this section is not intended to be only a
review of the WCM programme on professional maintenance (PM). Instead it will address some of
the questions maintenance teams have had about the programme and provide solutions for the
most common implementation issues.

Starting from defining maintenance as the science to keep and even improve the reliability of
equipment / assets, our maintenance organisation should be directly based on reliability-centred
maintenance (RCM). The issue is that, in most cases, our equipment / assets are not currently in
the condition that is required to establish RCM.

The fundamental prerequisite for RCM is to have all equipment / assets restored to their basic
conditions. However, this does not mean only the equipment / assets. It also includes the entire
infrastructure that is required to achieve the basic conditions. The key infrastructure areas that
must also be restored include the following:

• Documentation such as standard maintenance procedures (SMP), machine and component

drawings, and manuals.

• Competencies of maintenance technicians and operators.

• Appropriate activity schedules such as machine ledgers.

This can all be done by implementing the WCM programme.

9.1 PROFESSIONAL MAINTENANCE IN WCM

There is a state above the basic condition that is known as the ideal condition. The ideal condition
is a state that can be reached by improving or redesigning only after the basic condition has been
achieved and maintained.

The ideal condition is the way a piece of equipment / asset should have been designed to operate.
However, after it has been in use for a while, its limitations start to show. It should have had faster
throughput, used more accurate components, been easier to maintain, produced products with
less variation in output parameters, had better process control and remote systems analyses, and
included self-diagnostics.

The WCM PM programme is designed to help us achieve that ideal condition. The programme
activities are organised into 7 steps, which are aligned with 3 types of approaches (i.e. reactive,
preventive and proactive):

• Achieving the basic condition is the focus of steps 1 through 3 where a reactive approach is
used.

• Achieving the ideal condition is the focus of steps 4 through 7 where preventive and proactive
approaches are used.

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WCM and Professional Maintenance | Professional Maintenance in WCM

Illustration

WCM Professional Maintenance Activities

Periodically restore deterioration

Step 7
Control maintenance
costs
Exchange cycle 1 Step 6
Exchange cycle 2
Regular
Phase 3
Exchange cycle 3
maintenance Development of a
Phase 1 predictive
maintenance
Stabilise MTBF
Step 5 system
Individual product life
Development of a
Faults occur in
Phase 4
this range periodical
maintenance system
Predict breakdowns
Step 4
Counter measure on the machines
Only this range weak point and extension of the
Exchange cycle 2
Preliminary
does not fail
component average life
activities Exchange cycle 1

Step 3 Exchange cycle 2

Step 0 Lengthen component
Definition of Phase 2 life span
Exchange cycle 3

maintenance Irregular replacement from prediction of

remainning life
Increase strength
standards
Step 2 (Improvement)

Breakdown analysis

Step 1
Elimination and prevention of Exchange cycle 1

accelerated deterioration

Reactive Preventive Proactive

• Step 0 involves preparation. Maintenance teams study maintenance theory (e.g. types of
maintenance and 7 steps of WCM), ensure computer applications are used for PM rather than
100% paper-based documents, start spare part management (covered in section 7 of the
handbook), start oil and lubrication management (covered in section 10 of the handbook),
and apply 5S standards for Maintenance Workshop.

• Steps 1 to 3 use a reactive maintenance approach. The activities focus on restoring

equipment / assets to their basic conditions and restoring the required infrastructure areas.
Project engineers and maintenance technicians improve their knowledge on how a system
should operate when it is working correctly. Cooperating with AM, machine accessibility is
improved. Machine reliability is restored through mean time between failure (MTBF)
stabilisation, and initial maintenance standards are defined.

• Steps 4 and 5 use a preventive approach with time based maintenance (TBM) actions. Step 4
activities focus on lengthening component life span, prolonging intervention frequency and
improving MTBF performance. Step 5 activities focus on improving maintenance time. Both
steps help reduce maintenance costs.

• Steps 6 and 7 use a proactive approach. Step 6 activities focus on developing a predictive
maintenance system. Step 7 activities focus on managing maintenance by controlling the
parameters that are directly or indirectly linked to the deterioration of components.

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WCM and Professional Maintenance | Preliminary Activities

9.2 PRELIMINARY ACTIVITIES

Our focus for preliminary activities is on maintenance planning and the machine ledger, since
these are the most critical topics. For the remaining topics, other sections of this handbook and
all WCM materials can fulfil those needs.

Many maintenance managers think that by using a proper CMMS, they will automatically have
a good maintenance plan. But despite having a CMMS, breakdowns are often out of control and
maintenance costs are too high due to over maintenance. These misconceptions result from the
following issues with components:

• Personnel do not know what maintenance components actually require.

• Maintenance plans are not defined at the component level.

• Many components are not even included in the maintenance plan.

• No link exists between replacement time and actual expected life of components.

Project engineers and maintenance technicians must learn how to use a machine ledger to
develop a comprehensive maintenance plan at the component level. This plan can then be
managed through a CMMS.

9.2.1 Building a Machine Ledger

Initially, engineers and technicians are often reluctant to build a machine ledger. It takes time
to build, and they do not understand the benefits — especially on paper. However, the machine
ledger is exactly the right tool to use when developing a maintenance plan. In fact, starting plan
development using a CMMS will not provide the visibility needed in order to improve the plan.

Illustration
A machine ledger helps personnel coordinate all of the professional maintenance activities by
providing a way to collect a wide variety of relevant information and data at the component level:

Component Machine TBF per

Breakdowns component
classification decomposition
Breakdown number
Time to repair
A, B, C All components
EWO number
Root cause

Quality MTBF per

Machine ledger
problems component

Minor Spare parts Maintenance MTTR per

stoppages management strategy component
Preventive maintenance
activities
AM / TBM / IR / CBM
AM and PM calendar

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WCM and Professional Maintenance | Preliminary Activities

The first step in any plan is to establish what exactly the problem is in order to find out its
magnitude and what challenges WCM teams will face. This is a combination of hands-on
investigation, equipment restoration and analysis of past equipment performance. Ideally data
collection would go back as far as possible, but that is not practical. Instead a time period is
selected to start with — probably from 3 to 12 months. Teams populate the machine ledger with
all historical data in terms of planned and unplanned (i.e. breakdown) maintenance activities for
the time period selected.

Illustration
Plant condition control report to review maintenance versus breakdowns / failures in the
preventive maintenance calendar.

Template
To access the template, please visit the Professional Maintenance page on the ManEx portal.

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WCM and Professional Maintenance | Preliminary Activities

9.2.2 Creating a Breakdown Map

Once teams have collected equipment histories, analysed minor stops and have the initial
routines under control, they have enough performance data to create a breakdown map. The
reasoning for the map is simple. If a part is maintained correctly, it should not break down before
its next scheduled service. In this case, the team can highlight areas to confirm the effectiveness
of the PM.

Illustration
A breakdown map is a visual representation of a piece of equipment / asset that displays the
position and type of every single failure over the analysis period. WCM has a broad audience, so
it favours the simplicity of this type of visual imagery.

Breakdown Map

207 St 16 St
104 h 12 St 5h
7h Transfer 6 St
Plaster piece 16 h 6 AR
18 St 4 AR 5H
120 st 9.27 h
56 st Forming 2H Dryer
38.16 h Introduction
25 h 32 AR 11 St
15.35 H Product outlet 10.02 h 4 St
Cardboard 3.93 h
8 St
circuit
5.18 h
31 st
13.40 h

Wet transfer
28 St
45 St 17.82 h
Plaster Packaging 29 h
circuit 9 St
21 St 4.11 h
9.28 h 9 St
Additives 76 St
5h
circuit 35 h
63 St
34.17 h
60 St
72 h

9.2.3 Developing a Breakdown Analysis

Using data from the breakdown map, a breakdown analysis is developed. This first requires an
understanding of the three major causes of equipment / asset breakdowns:

1. Deterioration.

2. Uncontrolled stress.

3. Insufficient strength.

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WCM and Professional Maintenance | Preliminary Activities

Illustration

Major Causes of Equipment Breakdowns

Forced deterioration Natural deterioration

Poor design, fabrication, installation

Lack of required skills or proper documentation

Equipment and machinery have operating limits

based on design considerations.

start up useful life wear out

Time

1) Deterioration

Deterioration is a reduction in the performance or reliability of a piece of equipment / asset. It

subdivides into two types as follows:

• Natural deterioration is time-dependent.

• Forced deterioration occurs near the end of life and can have several causes such as:

Inadequate compliance with basic maintenance requirements. For example, cleaning,

oiling and tightening were not done properly or operators performed routine maintenance
improperly or not at all. These can be caused by personnel lacking the required skills or
having poor documentation.
Negligence in detecting natural and accelerated deterioration and in doing proper
restoration. For example, inspection, examination and preventive repair to correctly
restore the equipment are not done. These can also be caused by personnel lacking the
required skills or having poor documentation.
No awareness of the stress. For example, maintenance personnel did not know that a
particular component was stressed by external forces, which led to forced deterioration.

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WCM and Professional Maintenance | Preliminary Activities

2) Uncontrolled Stress

Uncontrolled stress can result from the following:

• Failure to comply with usage requirements. Equipment / assets have operating limits such as
for current, voltage, RPM, velocity and temperature. While limits are based on design
considerations, sometimes personnel ignore them.

• Errors made by maintenance personnel or operators when repairing equipment. There can
be several causes such as personnel using defective / wrong spare parts, personnel lacking
the required skills, or operation without licenses.

3) Insufficient Strength

Insufficient strength can be inherent due to poor design, poor fabrication and / or installation
errors. These can be caused by a lack of required engineering skills or human errors.

Illustration
The breakdowns from the breakdown map are categorised into the major causes. A root cause
analysis bar chart is then created for the major causes.

Full Year Breakdown Root Cause Analysis

180

160

140

120

100

80

60

40

20

0
Failure to Failure to Failure to Defective/ Insufficient Design
restore maintain observe op. wrong operator/ weakness
equipment basic con. conditions… spare parts maintenance

Note When developing a root cause analysis for breakdowns, a key decision is what level
of detail will be required in order to understand the real cause of the problem. Many
project engineers and maintenance technicians might think it is fine to simply replace
the failed component. But to avoid the failure occurring again, the real cause must be
identified and resolved.

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WCM and Professional Maintenance | Preliminary Activities

Here is a practical example of a root cause analysis that was done in a Unilever margarine factory.
As you read through the example, note that this systematic way of working is required in order to
reduce breakdown losses. It is actually the starting point of a preventive maintenance approach.

Example 1: Margarine Factory

The photo on the left shows a production unit that is leaking due to a failure in the mechanical
seal. The illustration on the right shows a scheme of the same unit, so you can see the individual
components.

To identify the root cause of this breakdown, the maintenance team disassembled the mechanical
seal unit. This illustration shows a more detailed scheme of the seal.

187
WCM and Professional Maintenance | Preliminary Activities

After disassembly, each component was investigated for potential issues. The helical spring had a
plastic deformation, and it had an open length of 57.5 mm when it should have been 61 mm. This
deviation caused a lack of push force. A new spring should be 320 N while this spring was only
254 N. The root cause of the plastic deformation on the spring was fatigue failure due to a lack of
planned maintenance — specifically improper maintenance frequency.

Ø 122,3 +0,7

Ø 8,5 +0,035
71,4

Lo
61
320 N +10%

Lc max.
34,5
LE
31,3
Ø 109 +0,3
41

Determining the right countermeasure required calculating the right maintenance frequency. To
do this, modelling was done using the finite element method. Based on the modelling results,
a 3 year interval was calculated for planned maintenance. A 3-year maintenance frequency was
added to the machine ledger for the helical spring component. In addition, a video of the standard
maintenance procedure (V-SMP) was captured to standardise the maintenance activity.

188
WCM and Professional Maintenance | Preliminary Activities

This bar chart summarises all the resolved machine breakdowns at the component level based
on the breakdown analysis developed during step 2 of WCM PM.

Machine Breakdowns at the Component Level

#BDs
4

0
Secondary Rotor Seal face Booster Seal spring Valve
seal (gasket) bearing pump seal

Failure to restore equipment Design weakness

The same approach can be applied at the factory level by summarising all machine breakdowns
based on part type (e.g. mechanical, electrical, etc.).

Full Year Mechanical Parts - Plant-wide Breakdowns

30

20

10

Full Year Electrical Parts - Plant-wide Breakdowns

30

20

10

189
WCM and Professional Maintenance | Preliminary Activities

Example 2: Ice Cream Factory

Let us look at a different situation at an ice cream factory. A shaft in a fruit feeder got stuck due to
corrosion on a bearing that supports it, which caused a breakdown. Looking at the sketch on the
left, a root cause analysis revealed the drain hole was too high and did not allow cleaning water to
fully drain off the shaft seat. This caused the corrosion, which in turn caused the breakdown. On
the right is a picture of the technical (drain) hole.

These photos show the extent of corrosion on the bearing. It is not a surprise that the bearing
was not being inspected or maintained. The initial maintenance plan was defined based on a
schedule recommended by the manufacturer. The manufacturer had provided data on only the
primary components and consumables, which did not include the bearing.

Note Quite often, initial maintenance plans are defined based on schedules recommended
by equipment manufacturers. While it is a reasonable first step, these schedules are
generic plans that usually only cover the essential, more obvious components and
consumable spare parts. They are not intended to cover all components or even
sub-groups of the same type. In many cases, they recommend too many checks, which
results in over maintenance.

190
WCM and Professional Maintenance | Preliminary Activities

The initial countermeasures were designing a cover to protect the bearing and modifying the drain
hole to allow all the water to flow out of the shaft seat. Eventually, replacing the bearing annually
was included in the machine ledger. These sketches illustrate the countermeasures.

These bar charts summarise breakdown statistics and positive trends at the ice cream factory
based on the breakdown analysis developed during step 2 of WCM PM:

Breakdown Statistics Model Area Root Cause

10
8
8
6
6
4
4
2
2
0
FI 1 PD 1 FI 2 PM PD 2 AM
0
Design Lack of Extern. Not Lack of Insufficient Wrong
weakness knowledge influence follow instr. lubrication maintenance assembley

Number of Breakdowns, Model Area Number of Breakdowns, Expansion Area

12
12 12

10 10
8
8 8

6 6 5

4 4
2
2 2
1
0
0 0
Prior year -1 Prior year Current year Prior year -1 Prior year Current year

191
WCM and Professional Maintenance | Preliminary Activities

Example 3: Ice Cream Factory versus Tea Factory

Looking specifically at the root causes of breakdowns reveals peculiarities of maintenance across
our factories. At the ice cream factory, lack of bearing lubrication plays a very important role in
equipment performance. This is followed by environment effect, which reflects the extreme
conditions in which bearings work (e.g. chemical corrosion, high temperatures, and high water
usage).

Root Causes of Bearing Breakdowns

25

20

15

10

0
Lack of Environment Bad Excessive Improper Unknown
lubrication effect lubrication load material

Contrast this with typical breakdown statistics in a tea factory. There is a peculiarity of tea
technology where electromechanics and electronic components are quite sensitive to dust.
However, maintenance issues in many of our factories are primarily related to bearings, chains,
belts and pneumatic components. This means our maintenance teams must be trained on these
differences. As a first step, an important part of this handbook is dedicated to these components.

Full Year Tea Factory - Plan-wide Breakdowns

160

140

120

100

80

60

40

20

192
WCM and Professional Maintenance | Results from Applying WCM PM

Note All of these examples show what we want to accomplish by doing the first three steps of
WCM. We want to restore our maintenance infrastructure, build engineering and
operator skill levels, and improve equipment performance. It only requires our
commitment, determination and time. Fortunately, we have access to a toolkit in the
form of a series of procedures, which we can apply to transform situations like this in
our factories.

9.3 RESULTS FROM APPLYING WCM PM

Applying the WCM PM programme at our factories has had a significant effect in reducing
long-term maintenance costs.

Example 1: Ice Cream Factory

This graph shows the evolution of maintenance cost and losses (from breakdowns) over the
first five steps of implementing WCM PM at the ice cream factory. The first part shows total cost
(maintenance cost plus losses) decreased 40%. Maintenance cost increased, but it was more than
offset by a decrease in production cost. The highest peak of maintenance cost occurred in April,
which was the end of step 3. That is when the initial maintenance standard was defined. Through
step 5, there was a 50% decrease in maintenance cost plus losses and maintenance cost
decreased about 30%.

Ice Cream Factory - Results from WCM PM

5000

4000

3000

2000

1000

0
Prior year -2 Prior year -1 Prior year Current year

Q2 Q3 Q4 Jan Feb Mar Apr May Jun Jul Aug Dec Jan Feb Mar Apr May Jun Jul Aug Jan Feb Mar

Lossess Maintenance Cost Cost + Losses

193
WCM and Professional Maintenance | Results from Applying WCM PM

Example 2: Tea Factory

Looking at a graph for the tea factory WCM PM implementation reveals similar results.
Improvements during the initial time period were quite modest since tea manufacturing requires
many parallel machines. More significant reductions were achieved starting in step 4.

Tea Factory - Results from WCM PM

3000

2500

2000
Step 3
1500 Step 2
Step 1
Step 0 B/C=1,26 Step 4
1000 B/C=2,2
B/C=1,36 Step 5
B/C=2,55
500 B/C=2,33 Step 6
0
Prior year -1 Prior year Current year

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Oct Jan Feb Mar

Lossess Maintenance Cost Cost + Losses

194
 10 LUBRICATION

10.1 LUBRICATION PROGRAMME DEVELOPMENT................................. 196

10.2 CENTRALISED LUBRICATION SYSTEMS ......................................... 197

10.3 SINGLE-LINE TOTAL LOSS LUBRICATION SYSTEMS ..................... 198

10.3.1 Basic Layout ................................................................................. 199
10.3.2 Planning, Installation and Maintenance ............................................... 199
10.3.3 System Capacity ............................................................................ 200

10.4 CIRCULATING LUBRICATION SYSTEMS .......................................... 200

10.4.1 Lubrication Systems with Restrictor Tubes ........................................... 201
10.4.2 Lubrication Systems with Metering Valves ............................................ 201
10.4.3 Lubrication Systems with Multi-circuit Gear Pump ................................. 202
10.4.4 Progressive Feeder Systems ............................................................. 203
10.4.5 Dual-line Systems .......................................................................... 204
10.4.6 Hydrostatic Lubrication .................................................................... 204
10.4.7 Minimal Quantity Lubrication Systems ................................................. 205

Types

Centralised lubrication
systems

Circulating
Total loss
lubrication
systems
systems

Systems

Single-line systems 195

Lubrication | Lubrication Programme Development

10 LUBRICATION
Introduction
Friction-related problems are some of the most important problems our maintenance personnel
encounter almost daily. The friction of two materials moving relative to each other causes heat
and wear. Anything that is introduced onto or between these moving surfaces to reduce friction is
called a lubricant. Oils and greases are the most commonly used substances, although many
other materials may be suitable. Other liquids and even gases are used as lubricants. For
example, air bearings are used in gyroscopes and other sensitive devices in which friction must
be minimal.

The functions of a lubricant are to:

• Separate moving materials from each other to prevent wear, scoring and seizure.

• Reduce heat.

• Keep out contaminants.

• Protect against corrosion.

• Wash away worn materials.

Good lubrication requires two conditions; a good technical design for lubrication and a
management programme to ensure that every piece of equipment / asset is properly lubricated.

10.1 LUBRICATION PROGRAMME DEVELOPMENT

Information for developing lubrication specifications comes from four main sources:

• Equipment manufacturers.

• Lubricant vendors.

• Other equipment users.

• Unilever's / individual's own experience.

As with most other preventive maintenance elements, initial guidance on lubrication should come
from manufacturers. They should have extensive experience with their own equipment, both in
their test laboratories and at customer locations. They should know what parts wear down and
need frequent replacement. Therein lies a caution. A manufacturer could in fact make short-term
profits by selling large numbers of spare parts to replace worn ones. Over the long term, that
strategy will backfire. Other vendors, whose equipment is less prone to wear and failure, will
replace them.

Lubricant vendors can be a valuable source of information. Most major oil companies invest
considerable time and effort in evaluating their customers’ equipment in order to determine
the best lubricants and the optimal change frequencies or intervals. Lubricant vendors perform

196
Lubrication | Centralised Lubrication Systems

a valuable service of communicating and applying knowledge gained from many users to their
customers’ specific problems and opportunities. Naturally, these vendors hope consumers will
purchase their lubricants, but the results can be beneficial to everybody.

Experience gained under similar operating conditions in your own facilities or by other users can
be one of the best resources. Personnel, including operators and mechanics, have a major impact
on lubrication programmes.

A major step in developing a lubrication programme is to assign specific responsibility and

authority for the programme to a competent project engineer.

The primary steps involved in developing a programme are to:

1) Identify the components that require lubrication.

2) Ensure every component is uniquely identified.

3) Ensure all involved components are included in the machine ledger.

4) Determine the locations on each component that need to be lubricated.

5) Identify which lubricant should be used (ensuring all relevant legal and Unilever standards are adhered to).

6) Determine the best application method.

7) Establish the frequency or interval of lubrication.

8) Determine the components’ conditions to be safely lubricated.

9) Decide who should be responsible — autonomous or preventive maintenance personnel.

10) Standardise the lubrication methods.

11) Establish procedures for storing and handling lubricants.

12) Evaluate new lubricants to take advantage of state-of-the-art products.

13) Analyse any failures involving lubrication and take necessary corrective actions.

A factory may have thousands of lubricating points that require regular attention. Lubrication is
no less important to any other systems.

10.2 CENTRALISED LUBRICATION SYSTEMS

In order to prevent lubrication management problems, it is important to evaluate opportunities to
install centralised lubrication systems. A centralised lubrication system supplies individual lube
points or groups of points with varying amounts of exactly metered lubricant from one central
location to meet different needs.

197
Lubrication | Single-line Total Loss Lubrication Systems

Illustration

Types of Centralised Lubrication Systems

Types

Centralised lubrication systems

Circulating lubrication systems Total loss systems

Systems

Lubricant Lubricants
Oil Single-line systems Oil
Fett
(NLGI grades 000 to 1)
Oil Progressive feeder systems Oil
Fett
(NLGI grades 000 to 2)
Oil Dual-line systems Oil
Grease
(NLGI grades 000 to 2)
Oil Multi-line systems Oil
Grease
(NLGI grades 000 to 2)
Oil Restrictor systems Oil

Oil Oil + air systems Oil

10.3 SINGLE-LINE TOTAL LOSS LUBRICATION

10.3 SYSTEMS
Single-line total loss lubrication systems work best for lube points that have relatively low oil
consumption and require intermittent oil delivery:

• The oil delivery units are manually, mechanically, hydraulically or pneumatically actuated
piston pumps or intermittently operated gear pumps.

• The lubricant is metered out by piston distributors installed in the tubing system.
Exchangeable metering nipples on the distributors make it possible to supply every lube
point with the requisite amount of lubricant per stroke or pump work cycle.

• The metered quantities range from 0.01 to 1.5 ccm per lubrication pulse and lube point.
The amount of lubricant that is fed to the lube points can also be modified by changing the
number of lubrication pulses.

On total loss lubrication systems, an oil return line from the lube point to the oil reservoir is not
required.

198
Lubrication | Single-line Total Loss Lubrication Systems

10.3.1 Basic Layout

The basic layout of a single line total loss lubrication system is always the same; 1) pump,
piston distributor, 2) main line (connection: pump – distributor), and 3) secondary line
(connection: distributor – lube point). Automatically operated systems also come with control and
monitoring units, pressure switches, float switches and indicator lights.

Gear Pumps

Gear pumps are especially well suited for automatic systems with monitoring and safety
equipment because of their electric drive. They can also be used on remote control systems that
are operated by pushbuttons.

Piston Pumps

Piston pumps have a limited delivery volume per stroke. As a result,

there are limits on the metered quantities and the size of a system.

Piston pumps are used in the form of manually, mechanically,

hydraulically or pneumatically actuated pumps.

Both piston and gear pumps have a hydraulic pressure relief device
that lowers the pressure of the lubricant in the main line (10 to 45 bars)
to a residual pressure (≈ 0.4 bars). This is done by a relief valve after
the lubricant has been delivered. This process causes the distributors
to reverse.

Piston Distributors

Piston distributors meter out and distribute the oil delivered by the pump (e.g. oil or grease of
NLGI grades 000 or 00). The quantities of lubricant for the individual lube points are determined
by exchangeable metering nipples. The metered quantity is shown on the individual nipples.

Four groups of distributors that differ by metering ranges and sizes can be selected from to
comply with the amounts required and space available. A mixture of the different distributor
groups can be used in one system.

10.3.2 Planning, Installation and Maintenance

When a machine has many lubrication points, a manual lubrication system can be prone to
human errors and require excessive time to maintain. For these machines, a centralised
lubrication system provides a good solution if it is properly planned and installed. The key steps
include the following:

• Determine the number of lube points.

• Estimate the amount of oil required per lube point and the total amount of oil required per
stroke (for piston pumps) or work cycle (for gear pumps).

• Select distributors based on the metering range and space available. A distinction must be
made between oil only distributors and those also suitable for fluid grease.

199
Lubrication | Circulating Lubrication Systems

• Choose pumps based on the type of actuation and system capacity required.

• Determine the type of control required for automatic systems (e.g. time or load dependent)
and any monitoring system that will also be required.

When installing a system, always refer to the manufacturer’s lubrication system manuals.

Illustration
Layouts of Main Lines

10.3.3 System Capacity

When planning a system’s capacity requirements, the calculated capacity of the distributor
system must not exceed two-thirds of the delivery rate per stroke or work cycle. This is to allow
for pressure that builds up in the system.

The system capacity is comprised of the following:

System capacity = Total output of all distributors in the system

System capacity + 25% of this value

System capacity + 1 ccm per meter of main line (expansion loss )

Hazardous materials of any kind, especially the materials classified as hazardous by Regulation
(EC) No 1272/2008 (previously EC Directive 67/548/EEC), may only be filled into lubrication
systems and components after consultation with and approval from the system manufacturer.
Likewise, any lubricants in use must adhere to all relevant legal and Unilever standards.

10.4 CIRCULATING LUBRICATION SYSTEMS

Circulating lubrication systems work best for lube points that have relatively high oil consumption
(also for heat dissipation) and require a continuous oil supply:

• The oil delivery units are gear, gerotor, piston and vane pumps.

200
Lubrication | Circulating Lubrication Systems

• The lubricant is apportioned to the lube points via restrictor tubes, metering valves, adjustable
metering valve distributors, flow control valves, progressive feeders and multi-circuit gear
pumps.

For multi-circuit gear pumps, as many as 20 lines can be connected directly, or by flow volume
dividers, to the individual lube points. When oil is distributed via restrictors and multi-circuit
pumps, the lube points are supplied with a continuous flow of oil in previously determined
amounts.

On circulating lubrication systems, an oil return line from the lube point to the oil reservoir must
be provided.

10.4.1 Lubrication Systems with Restrictor Tubes

One application of circulating lubrication systems delivers oil by single-circuit gear pump units
and restrictor tubes. This system uses tee connectors, manifolds and restrictor tubes to
apportion oil at the lube points with the specific flows.

The more symmetrical the layout of the tubing network, the more even the distribution of oil will
be. Systems with restrictor tubes are reliable in operation and are not sensitive to dirt.

Illustration

Single-circuit Gear Pump Units with Restrictor Tubes

adapter
tee piece manifold

restrictor tubes restrictor tubes

10.4.2 Lubrication Systems with Metering Valves

Another application of circulating lubrication systems delivers oil by single-circuit gear pump
units and metering valves. This system uses metering valves to apportion oil at the lube points
with the specific flows. The valves can be combined on manifolds or screwed into the threads of
the individual lube points.

201
Lubrication | Circulating Lubrication Systems

For this application, a micro filter must be installed upstream from the systems. Normally these
filters have replaceable cartridges.

Illustration
Single-circuit Gear Pump Units with Metering Valves

manifold
metering manifold
valve

metering valve

Another application of circulating lubrication systems delivers oil by a gerotor unit and metering
valve distributors.

Gerotor Unit with Metering Valve Distributors

Gerotor

filter
safety valve

10.4.3 Lubrication Systems with Multi-circuit Gear Pump

Circulating lubrication systems that use multi-circuit gear pump units are recommended when
there are varying back pressures. Multi-circuit gear pumps ensure an even distribution of oil. In
fact, one delivery circuit of the pump is assigned to each lube point. The layout of the tubing
system and the tubing resistance values are mostly of no significance for the distribution.

202
Lubrication | Circulating Lubrication Systems

Illustration

Multi-circuit Gear Pump

10.4.4 Progressive Feeder Systems

Progressive feeder systems allow central monitoring of all feeder outlets at a low cost. Metered
quantities of lubricant are fed progressively in predetermined order from the feeders to the lube
points — either directly or via a secondary downstream feeder. The lubricant does not leave the
respective feeder until the preceding one has discharged its volume. If a lube point does not
accept any lubricant (regardless of the reason), or if a secondary feeder is blocked, the entire
lubrication cycle is interrupted. This interruption can be used to emit a signal.

Illustration

Progressive Feeder Systems

One sensor, proximity switch
or microswitch monitors the
function of all feeders.

master
feeder
secondary
feeders

pressure gauge

2nd secondary feeder

(possible with oil only)
filter

pump

safety valve

203
Lubrication | Circulating Lubrication Systems

The characteristic features of progressive feeder systems are:

• Universal application for modes of operation and lubricants.

• Central monitoring of the functions of all feeders is possible at a low cost.

• Low susceptibility to breakdowns due to fitted pistons without springs or compressive seals.

When calculating the maximum possible oil quantity per outlet in circulating lubrication systems,
consider that this system can work no more than 200 cycles per minute. It can work up to 100
lube points, which can become several hundred in the case of ring circuit systems with in line
metering pumps.

Progressive feeder systems can ensure the exact apportioning of lubricants, even when back
pressure occurs at the lube points. The pressures can range from 30 to 100 bars and can even
reach 250 bars in the case of grease.

10.4.5 Dual-line Systems

Dual-line systems are central lubrication systems with two main lines. They are preferably used
for grease, but they are also suitable for oil. This system is especially suitable for extended
systems and more viscous types of grease. Assemblies with or without compressive seals are
available for light and heavy duty operating conditions.

All the distributors of a dual-line system are pressurised at the same time. That means lower
pressure losses in comparison to progressive feeders. The dual lubrication system can work up to
1,000 lube points or more with a length, which can reach even more than 100 meters. Distribution
points can be easily added and removed, and metered quantities are easy to change.

A dual-line system is more complicated due to its double main line. It is exact in apportioning
lubricant and is suitable for all oils and grease up to NLGI grade 2. It can be combined with
progressive feeders.

10.4.6 Hydrostatic Lubrication

Hydrostatic lubrication uses pumps outside the bearings to produce the oil pressure conforming
to the carrying force. The oil being fed under this pressure to the recesses flows out through the
bearing gap. Three systems with different characteristics are available, and the following
sequence also corresponds to the stiffness of the bearing assembly:

1. Restrictor system.

2. One pump delivery circuit per recess (multi-circuit pump system).

3. Diaphragm restrictors.

In FMCG, an application for this type of lubrication system is unlikely. For general knowledge
purposes, a brief overview follows for the multi-circuit pump system.

204
Lubrication | Circulating Lubrication Systems

Illustration
In the starting phase, the proportioning pressure valve keeps pressure P1 at approximately 2.5
bars. The surplus oil is returned via R. The priming pump supplies the multi-circuit pump with
oil. If pressure P2 rises, priming pressure P1 also increases via the valve to keep the difference
in pressure roughly constant. The difference in pressure between P2 and P1 should not exceed a
defined value, which depends on the delivery rate of the distributing pump.

Hydrostatic Lubrication System (Multi-circuit Pump)

pressure
recesses
shaft bearing
P2

oil
return P2

20
multi-circuit pump

M
leakage oil

z M
filter
R P P1 priming pump

proportioning pressure valve

max. pressure 100 bars
safety valve

strainer

10.4.7 Minimal Quantity Lubrication Systems

Minimal quantity metering systems are designed for lubricating tools, oiling joined parts,
spraying or wetting surfaces, and lubricating chains. These systems can also be used to oil the
compressed air that is used in pneumatic drives where, similar to cylinders, lubrication often
poses problems in layouts with a large number of branch lines.

205
 11 MANUFACTURING MEASUREMENT
11 TECHNOLOGY

11.1 BASICS OF MANUFACTURING MEASUREMENTS ........................... 207

11.1.1 Definitions .................................................................................... 207
11.1.2 Inspections ................................................................................... 208
11.1.3 Gauging ....................................................................................... 209

11.2 DRAWING SPECIFICATIONS ............................................................ 209

11.3 GEOMETRICAL SPECIFICATIONS .................................................... 211

11.3.1 Measuring Tolerances...................................................................... 211
11.3.2 Form and Position Tolerances............................................................ 212
11.3.3 Surface Finish Tolerances................................................................. 213

11.4 TYPES AND APPLICATIONS OF MEASURING DEVICES.................. 214

11.4.1 Types of Measuring Devices .............................................................. 214
11.4.2 Applications of Measuring Devices ...................................................... 215

11.5 SURFACE METROLOGY..................................................................... 218

11.6 FORM AND POSITION MEASURING ................................................. 219

11.7 LASER MEASURING TECHNOLOGY ................................................. 221

2.028
Zero Preset
Hold Data

Measuring
Difference object

Precision-
gauge
206
block
Manufacturing Measurement Technology | Basics of Manufacturing Measurements

11 MANUFACTURING MEASUREMENT
11 TECHNOLOGY
Introduction
Measurement is the determination of the value of a physical quantity (i.e. measured quantity) in
comparison to a reference value.

Manufacturing measurement technology is part of the field of measurement technology. It

deals with the methods, equipment, and strategies for measurement in the realm of mechanical
production processes. Manufacturing measurement technology is directly integrated into the
production line. It is also used in other locations such as rooms with specifically-controlled
environmental conditions.

The objectives of manufacturing measurement technology are as follows:

• To evaluate products.

• To evaluate processes and machines.

• To establish and maintain quality-orientated process controls.

11.1 BASICS OF MANUFACTURING MEASUREMENTS

In today’s manufacturing environments, measurement technology is an essential component of
manufacturing processes. To understand the basics of manufacturing measurements requires
knowing the relevant terminology, geometrical features, and technical aspects of measuring.

The geometrical features include lengths, angles, distances, and surface structures. Each
geometrical feature has tolerance, which is an allowable deviation in the actual size and shape
of an object from its nominal size and shape. Allowable deviations should be defined on the
drawing specification that is prepared by the constructor. Inspection is a basic manufacturing
measurement process that is used to measure objects. Inspections and measurements are
conducted to determine if the actual deviation is within the allowable deviation.

There are many different types of measuring devices and techniques to perform inspections and
measurements. Gauges and calipers are common devices used to measure the dimensions and /
or forms of objects. The correct device must be selected for each application based on the
measurement requirements and the environmental conditions in order to accurately measure
the object.

11.1.1 Definitions
The definitions of key terminology form the basis for understanding manufacturing
measurements:

• Metre and second are the relevant International System of Units (SI) used to describe
geometrical features.

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Manufacturing Measurement Technology | Basics of Manufacturing Measurements

• Degree and radian are used to describe angles.

• Measure is the physical measurement that comes from the measuring process.

• Measuring object is the object from which the quantity was measured.

• True value is the value of the measure that actually exists but is currently unknown. The
objective of the measuring process is to determine this true value.

• Static measurement measures a variable that does not change with time (e.g. diameter).

• Dynamic measurement measures a variable that changes with time (e.g. vibration) or a
variation that arises from the time-dependent behaviour of another variable (e.g. surface
roughness depends on the measured value of the scanned measuring length).

11.1.2 Inspections
Inspections are the basic manufacturing measurement process used to determine whether an
object fulfils a particular requirement. As subjective inspections should not be considered, one
can differentiate objective inspections into measuring and gauging. The means of inspection can
be divided into indicating measuring devices, measurement standards, gauges, and additional
measuring devices.

Illustration

The drawing shows a digital dial indicator

Digital Dial Indicator and Measuring Block and a measuring block, which is the most
important measurement standard of
dimensional measuring technology:

• Measuring blocks are quadrilateral

metal or ceramic gauges with parallel
end faces that have a known width
and minimal deviation.

• The gauge and stand are examples of

additional measuring equipment.

208
Manufacturing Measurement Technology | Drawing Specifications

11.1.3 Gauging
Gauges are inspecting devices that represent the dimension and / or form of the workpiece that is
to be tested. The procedure is always the same — to try to mate the workpiece elements with the
correct gauges. The result is a simple yes or no decision. There are three types of gauges:

Limit Gauges Limit gauges test whether the value of a test object is larger or smaller than
the value of the gauge. An example is a pin gauge.

Receiving Receiving gauges compare the form of the workpiece with the form of the
Gauges gauge. The best-fitting pieces can then be separated out. Examples are radius
or screw pitch gauges.

Go and No-go Go and no-go limit gauges are the most important for inspecting
Limit Gauges manufacturing toleranced elements. These gauges have go and no-go sides,
which correspond to the largest and smallest measurements possible
respectively. Both sides are verified one after the other to check for mating.
The inspection result is good when the workpiece fits comfortably into the go
side and not into the no-go side.

The Taylor principle states:

• On the go side, all the measurements or control measurements are tested

at the same time.

• On the no-go side, every measurement or control measurement is tested

in isolation.

11.2 DRAWING SPECIFICATIONS

Drawing specifications are the inputs to maintenance that define the required functions of
equipment / assets as prepared by the constructor. Therefore, these drawings are the bases
for maintaining equipment / assets at their basic conditions. The complete, integrated machine
drawings, as well as single-component drawings, are used to clarify the allowances that are
permitted for a piece of equipment / asset to be considered in basic condition. Hence, it is crucial
for maintenance to know how to work with (i.e. draw and read) drawing specifications.

Geometric dimensioning and tolerancing (GD&T) is the special symbolic language used to
specify the size, shape, form, orientation, and location of features on a part. Features toleranced
with GD&T reflect the actual relationships between mating parts. Drawings with properly applied
geometric tolerancing provide the best opportunity for uniform interpretation and cost-effective
assembly. GD&T was created to ensure the proper assembly of mating parts, to improve quality
and to reduce cost.

GD&T communicates design intent. This tolerancing scheme identifies all applicable datums,
which are reference surfaces, and the features being controlled to these datums. A properly
toleranced drawing is not only a picture that communicates the size and shape of the part, but it
also explains the tolerance relationships between features.

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Manufacturing Measurement Technology | Drawing Specifications

Example

The drawing shows a simple

example of how dimensioning and
tolerancing can be applied. It is easy
to see that all dimensions are
connected to the left and higher
sides of a plate. It means these
surfaces are identified as datums.

Datums are “baseline” surfaces that

are used on drawings to interconnect
the elements of the drawn figure and
to set a flow for the tolerance chain.

Datums must be defined by the constructor during the design / drawing stage in a way that
accomplishes the following:

• Measurements from a datum to a specified point on a figure can be easily applied during
manufacturing in order to ensure tolerance chain compliance. A key factor to consider is that
during manufacturing some surfaces of the object will be fixed on the machine.

• Measurements from a datum can be easily applied during installation of an object in order
to ensure there is only one way to install / assemble the object and there is tolerance chain
compliance for the installation / set up.

Datums are usually not specified when the plus or minus tolerancing system is used.
Consequently, someone reading a drawing would not know which datums apply and in what
order. Recall in the preceding example how the higher and left sides of the part were the datums.
However, when these datums are not specified anywhere, they are called implied datums. Where
datums are implied, the constructor has not indicated which datum is more important.

All of the datums must be specified in their order of precedence.

Example

In the drawing, the situation is

self-explanatory.

A B

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Manufacturing Measurement Technology | Geometrical Specifications

10 Golden Rules of Drawing Preparation

The 10 golden rules should be followed for each drawing preparation in order to ensure the
drawing is in compliance with GD&T:

10 Golden Rules

1) Each dimension shall have a tolerance except those dimensions specifically identified as reference, maximum,
minimum, or stock.

2) Each feature shall be fully dimensioned and toleranced so that there is a complete description of the
characteristics of each part. Use only the dimensions that are necessary for a full definition of the part.
Reference dimensions should be kept to a minimum.

3) Each dimension shall be selected and arranged to satisfy the function and mating relationship of the part and
shall not be subject to more than one interpretation.

4) The drawing should define the part without specifying a particular method of manufacturing.

5) A 90° angle applies where centerlines and lines representing features on a drawing are shown at right angles
and no angle is specified.

6) A basic 90° angle applies where centerlines of features in a pattern or surfaces shown at right angles on a
drawing are located or defined by basic dimensions and angles are not specified.

7) Unless otherwise specified, all dimensions are to be measured at 20°C (68°F). Measurements made at other
temperatures may be adjusted mathematically.

8) All dimensions apply in the free-state condition except for non-rigid parts.

9) Unless otherwise specified, all geometric tolerances apply for the full depth, full length, and full width of
the feature.

10) Dimensions and tolerances apply only at the drawing level where they are specified. For example, a dimension
specified for a particular feature on a detailed drawing is not required for that feature on an assembly drawing.

11.3 GEOMETRICAL SPECIFICATIONS

Geometrical specifications can be separated into measuring tolerances and shape tolerances.
Shape tolerances include form and position tolerances and also surface finish tolerances.
Surface finish tolerances can be divided into roughness and waviness.

Note that most of the principles and definitions for geometrical features also apply to
non-geometrical parameters.

11.3.1 Measuring Tolerances

Measuring specifications consist of the nominal size and defined permissible upper and lower
allowances. The nominal size plus the upper allowance is the largest acceptable measure.
The nominal size plus the lower allowance is the smallest acceptable measure. The difference
between the upper and lower allowances is the tolerance.

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Manufacturing Measurement Technology | Geometrical Specifications

Measuring Specifications

The definition on the drawing is shown through the specification of a nominal size supplemented
either directly by a coded specification of the allowance or through a letter and a number
combination (refer to ISO 286). The letter describes the position of the tolerance field with
respect to the zero line. The number represents the magnitude of the tolerance.

For example, the specification 36−0.025/−0.050 corresponds to the drawing specification, 36 f7.
In manufacturing terms, this means the largest acceptable measurement is 35.975 mm
(36 - 0.025) and the smallest acceptable measurement is 35.950 mm (36 - 0.050). According to
ISO 2768, whenever the nominal sizes are the only values displayed on the drawing then the free
size tolerances can be specified.

The position of the tolerance with respect to the zero line, which corresponds to the nominal
size, and the size of the tolerance determine the function of the proposed piece. The size of the
tolerance is furthermore decisive for the cost of the manufacturing process.

11.3.2 Form and Position Tolerances

Form and position tolerances define the zones into which the corresponding element must fit
when it is within the tolerance.

Illustration

Form tolerances are defined in ISO 1101.

Form Tolerances They include single elements such as:

• Lines.

• Rectangles.

• Circles.

• Cylinders.

• Profiles.

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Manufacturing Measurement Technology | Geometrical Specifications

Illustration

Position Tolerances
Position Tolerances
Position tolerances are divided into
direction, place and run tolerances (see
top drawing). In each case, position
tolerances refer to an individual element
of the workpiece.

Tolerance Frame

The necessary specifications are

represented in a tolerance frame (see
bottom drawing). The frame contains a
tolerance symbol, which signifies the
type of tolerance, and a tolerance value,
which may have a reference length.

The indication arrow connects the

tolerance frame with the tolerated
element, or rather the associated lines of
measurement or symmetry on the
drawing.

Whenever the type of tolerance requires

it, the reference element is indicated at
the end of the tolerance frame through
the specification of a letter, which repeats
the necessary reference basis. In a few
Tolerance Frame cases, more reference elements are
possible.

11.3.3 Surface Finish Tolerances

The tolerance specification for surface finish is shown by a symbol and supplemented by
additional specifications. One specification is tolerances for the roughness value, which most
often is the arithmetic average surface finish or Ra. Additional specifications can include, when
necessary, specifications for the manufacturing process, tolerances for further roughness or
waviness parameters, and the grooving direction.

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Manufacturing Measurement Technology | Types and Applications of Measuring Devices

Illustration

The drawing shows three examples of

Tolerance Symbols tolerance symbols.

The two right symbols also indicate

whether material cutting machining is
necessary or not permissible.

11.4 TYPES AND APPLICATIONS OF MEASURING

11.4 DEVICES
When measuring workpieces, different influences can have a negative impact on the measuring
results. For example, inclination between the measuring instrument and the measured object,
bending, deformation from the measuring force, and environmental conditions can lead to
deviations in measurements.

Some of these effects can be reduced or even avoided by first selecting the proper type of
measuring device and then properly operating the device.

11.4.1 Types of Measuring Devices

Measuring devices work on very different physical principles. Simple mechanical measuring
devices include the steel rule and measuring tapes. Measuring devices with mechanical
reduction include nonius calipers, dial indicators, and micrometres. Pneumatic systems have
long been used because of their non-contact scanning. At present, electrical, magnetic and
optical — or more specifically optical-electrical — principles have emerged in the field of
measurement. Their common essential property is that the measured value can be directly
transformed into an output signal or onto a recording media.

Illustration

Types of Measuring Devices

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Manufacturing Measurement Technology | Types and Applications of Measuring Devices

Measuring Chain

A measuring chain is a type of measuring device that is essential for a secure measuring value
collection. It should be constructed as short as possible and stiff.

Illustration

The measuring chain in the drawing is

Measuring Chain composed of the following:

• Measuring device.

• Stand for support.

• Base plate.

• Measured object.

Starting from the input value, the output

value is obtained through a measuring
sensor, an amplifier, and an
analogue-to-digital converter.

In the drawing, the input value is the

displacement of the probe by the
measuring object.

The output value is the measured value

of 8.02 mm.

11.4.2 Applications of Measuring Devices

There are many essential properties of measuring devices that determine the applicability of the
instrument to specific measuring situations. The achievable information content of a
measurement is an essential distinction criterion. Also, the accessibility of the measuring value
to the workpiece reduces the possible selection of measuring devices. The type of probe (e.g.
contact and non-contact) is also relevant. The fundamental probe shapes are spheres, planes and
cutting edges.

Let us look at the following additional essential properties in more detail:

1. Measuring uncertainty.

2. Direct collection of measuring values.

3. Difference measuring.

4. Inversion point.

5. Environmental conditions.

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Manufacturing Measurement Technology | Types and Applications of Measuring Devices

1) Measuring Uncertainty

The measuring uncertainty is an essential characteristic of measuring devices. A measuring

device is qualified for a designated measuring task only when the uncertainty does not exceed a
ratio with the tolerance of u/T = 0.1 to 0.2.

2) Direct Collection of Measuring Values

The direct collection of measuring values (e.g. calipers or micrometres) is the easiest type of
measuring implementation. The measuring range of the measuring devices must overlap with the
measuring object. For example, the range of measurement of a displaced micrometre is 25 mm.
Objects with lengths ranging from 0 to 25 mm can be measured. The measuring uncertainty for
this micrometre should be in the range of 10 to 20 μm.

3) Difference Measuring

If the tolerance of the measuring value is so small that the required ratio between the measuring
uncertainty and tolerance can no longer be met, a measuring device with a smaller measuring
uncertainty must be selected. Smaller measuring uncertainties are often accompanied by smaller
measuring ranges. Difference measuring can be used whenever a measuring device has a
measurement range that is smaller than the required measuring value — for example, because of
the measuring uncertainty requirements.

A measurement standard whose value differs from the measuring value by no more than the
measuring range of the measuring device must be selected for difference measuring.

Illustration

In the drawing, the measurement

Difference Measuring standard is shown as a combination of
block gauges.

The measuring device is used so that the

readout is possible both by probing the
measurement standard and the
measuring object.

The length of the measuring object is the

length of the precision gauge block plus
the difference between the read-out for
the measurement standard and the
measured object.

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Manufacturing Measurement Technology | Types and Applications of Measuring Devices

4) Inversion Point

The search for an inversion point is another important application option.

Illustration
The drawing shows an example of the measurement of an inside diameter that has a two-point
measuring instrument (i.e. two probing points on the cylinder’s interior).

This instrument aligns itself through

Inversion Point the measuring force and supported by
special structures. The cylinder axis
intersects the connecting line between
the two probe points.

This instrument can be pivoted from the

left, through the middle, and to the right
position. The displayed measuring value
becomes smaller when first pivoted left.
After the middle position, it becomes
larger.

The smallest displayed value, the

inversion point of the needle,
corresponds to the shortest connection of
the probed cylinder surface line, and thus
the diameter.

5) Environmental Conditions

The environmental conditions are generally specified by the room where the measurement takes
place. Measuring rooms are grouped into five classes:

1. Precision measuring rooms (class 1) serve the calibration of reference standards.

2. Fine measuring rooms (class 2) serve the calibration of used standards and for acceptance
inspection of precision parts.

3. Standard measuring rooms (class 3) serve measuring tasks for monitoring processes, for
fixtures and tools, for controls on inspection equipment (e.g. factory standards), and for
conducting first prototype inspections.

4. Production-related measuring rooms (class 4) serve for monitoring production, machine

settings, and instruments.

5. Manufacturing measuring sites (class 5) serve for production-related measuring.

This spectrum is supplemented by special measuring rooms. For example, semiconductor

wafers require special rooms. The properties that have predefined limit values in every
measuring room class include temperature (e.g. basic temperature, time, and local temperature
variation), vibrations, air quality (e.g. fine dust and suspended matter), air humidity, and lighting.

217
Manufacturing Measurement Technology | Surface Metrology

Temperature is a substantial influential parameter for geometrical data acquisition. The

reference temperature is the temperature at which workpieces have their true measurement
value and the inspection equipment can detect that value. The reference temperature for
measurement is 20°C (68°F). These specifications apply to all pieces in the measuring chain. For
example, at a temperature increase of 1 K, a piece of steel that is 1 metre in length will become
about 13 μm longer. The alternative is to measure at the existing temperature and then correct
the measuring value. However, this is particularly problematic for geometrically and
compositionally inhomogeneous inspection equipment or workpieces and by temporally and
spatially varying temperatures.

11.5 SURFACE METROLOGY

The surfaces of geometric objects continuously provide an informative testing object.
Considerations include appearance, evaluation of expected functional behaviours, and
manufacturing and wear conditions. The application of modern measuring devices, along with
sophisticated computer technology, facilitates detailed evaluations and conclusions. Only a few
years ago, this would not have been possible. Today, these approaches are widely applied to meet
the demands of users.

Small, independent, portable instruments with skid pick-up systems are easily used to directly
monitor tooling processes. Large stationary laboratory instruments, which have free probing
systems and correspondingly large measuring ranges and higher resolutions, are also being
used.

Illustration

The basic construction of a stationary

Basic Construction of Stationary surface metrology instrument starts with
Surface Metrology Instrument a base and a pillar.

A feed unit is attached to the pillar, where

it can be positioned aloft and pivoted
opposite the base.

A probing system is positioned with high

precision on the feed unit. This
positioning constitutes the measuring
basis for probing a measuring object.

If required, the system can be supplemented with an additional y-table. A y-table facilitates the
step by-step movement of the workpiece perpendicular to the feeder movement. This enables
three-dimensional scanning.

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Manufacturing Measurement Technology | Form and Position Measuring

Instruments constructed as component systems allow a surface probing system to be used as a

contour probing system. This expands the measuring range and allows many different types of
probes to be used. It also expands the application range of the instrument considerably. If
surfaces are sensitive to mechanical probing, a non-contact probing system can be implemented
instead. One option is to use auto-focusing laser sensors.

Developments in electronics over the last few years have made it possible to digitise large
quantities of data with a higher decimal precision (i.e. higher number of levels) at sufficient
speeds. This has enabled collecting many measuring points (with a smaller distance between
measuring points at acceptable collection speeds) over larger measuring ranges with greater
resolutions (small Δz). The accessories for roughness measuring instruments range from
stylus stop attachments to a large selection of specialty probing elements and various skids.
These specialised accessories allow instruments to be tailored to measuring tasks.
Environmental conditions are also an important aspect to consider. Implementation in a
laboratory setting, in contrast to the factory floor, brings with it significant improvements in
environmental conditions. This facilitates tasks that require greater precision demands.

ISO Standards and Consequent Requirements

The relevant ISO standards give not only definitions of characteristics but also requirements on
measuring instruments (e.g. probe tip radius and distance between measuring points) and
software (e.g. phase-correction Gauss filter). Because the explanations are too long to include
here, refer to ISO 4287 for more information.

11.6 FORM AND POSITION MEASURING

In most cases, form inspection equipment starts with five base components.

Illustration

The form inspection equipment starts

Form Inspection Equipment with a base and a column. A turntable
with Vertical Probe System is integrated into the base. The column
has an attached arm, which carries the
measuring system.

Even after the instrument is constructed,

the turntable, column, and / or arm can
be arranged as a measuring base. The
measuring system is typically inductive.

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Manufacturing Measurement Technology | Form and Position Measuring

The probing system is carried out with a spherical probe element. To keep abrasion to a
minimum, ruby probing elements can be used.

Coordinate measuring machines are used for measuring execution. The measuring system is
inclinable, which allows the direction of the measuring force to be reversed. Therefore, almost all
of the necessary measuring points can be reached. With a vertically arranged probe system, the
measuring force from the workpiece acts radially outwards. Depending on the measuring task,
one or more feed axes can be implemented.

Example
While there are many different types of form inspections, let us discuss how a roundness
inspection (upper left-hand corner of drawing) is used.

The workpiece is positioned on the

Types of Form Inspections turntable. Then the piece is orientated
to the rotating axis, so the measuring
system will remain in the measuring
range throughout inspection.

With a larger measuring range, visual

judgement will suffice for orientation.
Note that a large measuring range leads
to a bad resolution.

With a smaller measuring range, a more

accurate orientation of the piece is
demanded. Note that a small measuring
range leads to a better resolution.

After the probe is brought into contact

with the object at the desired position,
the measuring object is rotated 360° by
the turntable. While the object is turning,
the measuring points are scanned and an
ideal circle is calculated.

Depending on the purpose of the inspection, compensating methods can be selected such as
Gauss, circumscribed circle or inscribed circle. For the compensating circle, the range between
the lowest point and the highest point is the roundness deviation. To investigate the causes of
deviations, the desired frequency domains can be filtered or a frequency analysis such as fast
Fourier transform (FFT) can be used.

220
Manufacturing Measurement Technology | Laser Measuring Technology

11.7 LASER MEASURING TECHNOLOGY

Based on its properties, laser measuring technology has gained a strong position as an integrated
measurement technology for manufacturing processes. As a basic overview, here are a few
examples along with some advantages and disadvantages.

The application profiles of laser measuring systems are as different as their parameters. At the
low end, they are used for simple dimensional completeness checks. At the high end, they are
used as high-precision measuring systems to determine surface roughness or even the
acceleration of tooling machine components. From the many possible application variations,
only those few that use the various properties of light are considered. Next to the time-of-flight
method, which is not commonly used in mechanical engineering applications, other applications
include linear propagation, reflection and interference.

Selecting the best sensor for a specific application and arranging the sensor relative to the
measuring object are based on criteria such as the following:

• Operating distance. • Measurement uncertainty.

• Measuring range. • Measuring spot diameter.

• Resolution (i.e. scale value). • Light colour and intensity.

In addition to technical and scientific, two other key considerations are price and safety. For an
entire system, the price will increase when sensors, processing electronics and possibly
components for moving measuring objects are included. Safety and protection against accidents
cannot be ignored. Because most laser measuring systems are equipped with low-power lasers
(hazard category 1–3), skin burns are rather improbable. However, radiation reflecting off metallic
surfaces is problematic and eyes must be well protected.

221
Acronyms

12 ACRONYMS
5S Sort, Straighten, Shine, Standardise, Sustain

ABC Activity-Based Costing

AM Autonomous Maintenance

BM Breakdown Maintenance

BOM Bill of Materials

CBM Condition-Based Maintenance

CMMS Computerised Maintenance Management System

COD Chemical Oxygen Demand

CPT Cost Per Tonne

CRG Cost Reporting Group

EC European Commission

ECRS Eliminate, Combine, Reduce, Simplify

ED3MS Engineering Data-Drawing-Document Management System

EEM Early Equipment Management

EFNMS European Federation of National Maintenance Societies

EOQ Economic Order Quantity

EPR Environmental Performance Reporting

ERV Equipment Replacement Value

EWO Emergency Work Order

FFT Fast Fourier Transform

FIFO First-In, First-Out

FMCG Fast-Moving Consumer Goods

FTE Full-Time Equivalent

GBV Gross Book Value

GD&T Geometric Dimensioning and Tolerancing

222
Acronyms

GPC Global Product Costing

HR4F Human Resources for Factories

HRUPS Human Resources Unilever Production System

I&R Inspect and Repair

IEA International Energy Agency

ISO International Organization for Standardization

JIT Just-in-Time

KAI Key Activity Indicator

KPI Key Performance Indicator

LT Lead Time

LTA Lost Time Accident

MTBF Mean Time Between Failures

MTC Medical Treatment Case

MTTF Mean Time to Failure

MTTR Mean Time to Repair

MTTR/r Mean Time to Repair/replace

NOF Number of Failures

NPI Non-Production Item

OEE Overall Equipment Effectiveness

OTIFQ On Time, In Full, Quality

PDF Portable Document Format

PES Perfect Engineering Stores

PI Performance Indicator

PIC Person in Charge

PM Professional Maintenance

223
Acronyms

PO Purchase Order

R&M Repair and Maintenance

Ra Roughness Average

RACI Responsible, Accountable, Consult, Inform

RCA Root Cause Analysis

RCM Reliability-Centred Maintenance

ROP Reorder Point

ROQ Reorder Quantity

RWC Restricted Work Case

SAP-PM SAP-Plant Maintenance

SBO Safety Behaviour Observation

SHE Safety, Health and Environment

SI International System of Units

SMP Standard Maintenance Procedure

SMRP Society of Maintenance and Reliability Professionals

SOP Standard Operating Procedure

TBM Time-Based Maintenance

TRFR Total Recordable Frequency Rate

URS User Requirement Specification

VMI Vendor-Managed Inventory

V-SMP Video-Standard Maintenance Procedure

WCM World Class Manufacturing

WO Work Order

ZBB Zero-Based Budgeting

224
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