990115SYQNA001CLSP1CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganisationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.PDDocumentJanuary1999APrimeronEquipmentMaintenanceStrategies990115SYQNA001CLSP12OVERVIEW•Achievinglong-termmaintenanceperformanceimprovementrequiresincreasingtheeffectivenessofcriticalequipmentviabothredesigningequipment/componentstoreducerepeatfailuresandthenoptimisingthemaintenancestrategiestominimisetotalcostofownership•However,traditionalapplicationofbrainstormingsessionsdoesnotidentifyallequipmentredesignopportunitiesandthesoftwareusedforstrategyoptimisationisoftenamisused‘black-box’•ThisdocumentprovidesastructuredanalyticalapproachtoidentifyingequipmentredesignopportunitiesandoptimisingequipmentstrategiesusingaclientexamplethatcanbeusedwithinaTOPprogramorasthefocusofabreakthroughteam990115SYQNA001CLSP13Improvingmaintenancecanhelpclientsinthreebroadareas:reducedcost,higherproductivity,andreducedriskofcatastrophicfailures.IMPACTOFBETTERMAINTENEANCEONREVENUE,COST,ANDCAPITALEMPLOYEDImpactofbettermaintenanceReducingthedirectcostofmaintenanceIncreasingtotalproductivityReducingtheriskofcatastrophicfailures,therebyensuringthesafetyofemployees,customers,andcommunitiesReducepeoplerequired(internalandexternal)Reducematerials/partsrequiredIncreasedfirst-passyield/uptimewithsame(orfewer)peopleandsame(orless)equipmentAvoidordefercapitalspending(eg,toexpand)ReducefinishedgoodsandsparepartsinventoryReducetheprobabilityofanaccidentReducetheseverityofanaccidentImpactCostCostRevenueCapitalemployedCapitalemployedCostofclaims,insurancepremiums,losttimePerceptionof‘doingtherightthing’990115SYQNA001CLSP14KEYELEMENTSOFWORLD-CLASSMAINTENANCEOverallgoalsAchievingthesebenefitsrequiresimprovingsixelementsofmaintenanceandthisdocumentfocusesonequipmentstrategiesKeyelementsProblemdiagnosisandrepairexecution•Gettingthejobfixedfastandfixedrightthefirsttimeattheroot-causelevelEquipmentstrategy•Executinglowtotal-costequipmentstrategiesfocusedonpreventingfailuresandeliminatingallpossibleequipmentdefectsOrganisationalcapabilities•Anorganisationwhichcommunicateswellcross-functionally,sharesaccountability,andcontinuouslybuildskeyskillsPlanningandscheduling•Gettingtherightpeoplewiththerightinformation,skills,andresourcesattherighttimedoingtherightjobsInfrastructuresupport•Providingtherightfacilities,materials,andotherresourcesforefficientmaintenanceexecutionSystemsupport•Providingtherightinformationinordertoexecutejobs,identifyroot-causeproblems,executeequipmentstrategiesandtrackperformanceMaximiseeffectivenessMaximiseefficiencyAchieveworld-classmaintenanceperformanceFocusofthisdocument990115SYQNA001CLSP15A$MillionsperyearExperienceindicatesthatequipmentstrategyimprovementsaccountforupto50%ofthemaintenanceimprovementpotentialMAINTENANCESAVINGSFROMATOPPROGRAMACROSSMULTIPLESITESCLIENTEXAMPLE0.112.91.95.65.60.1106.580.3TotalFocusonthisdocumentOriginalcostbaseProblemdiagnosisandrepairexecutionEquip-mentstrategyOrganis-ationalstructurePlanningandscheduleInfra-structuresupportSystemssupportFuturecostbaseEffectivenessEfficiencyA20%reductioninthedirectcostofmaintenance990115SYQNA001CLSP16Equi...
