Copyright1999CONFIDENTIALThisreportcontainsinformationthatisconfidentialandproprietarytoMcKinsey&CompanyandissolelyfortheuseofMcKinsey&Companypersonnel.Nopartofitmaybeused,circulated,quoted,orreproducedfordistributionoutsideMcKinsey&Company.Ifyouarenottheintendedrecipientofthisreport,youareherebynotifiedthattheuse,circulation,quoting,orreproducingofthisreportisstrictlyprohibitedandmaybeunlawful.LeadingedgemaintenanceintheprocessindustriesOrganizationalprinciplesandoptimizationopportunitiesUlrichDähne,MarkusHamm,PeterSanderJanuary19992981016DU4_161821_021.v3CONTENTS•Problemsofcurrentmaintenanceandrepairstructures•Principlesofsuccessfulmaintenanceorganizations•Directionsofthrustforoptimizationandoptimizationresults–Technicalimprovements–Organizationalstructure–Organizationalprocedures/processes•Projectapproach3981016DU4_161821_021.v3CONTENTS•Problemsofcurrentmaintenancestructures•Principlesofsuccessfulmaintenanceorganizations•Directionsofthrustforoptimizationandoptimizationresults–Technicalimprovements–Organizationalstructure–Organizationalprocedures/processes•Projectapproach4981016DU4_161821_021.v3Source:McKinsey•CentralmaintenancewithfunctionalorganizationbytechnicalareasDEVELOPMENTOFPROCESSINDUSTRYCOMPANIESCONCEPTUALCharacteristicsofM&RCompany/locationsetupExpansion/extension/renewalConsolidation/divisionalization•Organization•Enlargementofexistingtechnicalareas•Extensionbynewtechnicalareas•Decentralizationofindividualmaintenancetasksbysetupofon-siteworkshops•Optimumcentrallocationofallworkshopsatonelocation•Layout•IncreasingNo.oflocations,centralworkshops,aimedatextensions/newfacilities•Centralworkshopswithvariouslocations•On-siteworkshopsindirectvicinityoffacility•Fragmentationofcentralworkshops(regionallyandorganizationally)•Suboptimumlocationsthroughregionalshiftofkeyproductionareas•Unbalancedshiftofresponsibilityinproductionandmaintenance•Sharedvaluesandcollaborationofcentral/decentralmaintenance–Problems5981016DU4_161821_021.v3Source:McKinseyClientAMAINWEAKNESSESINMAINTENANCEORGANIZATION–EXAMPLESClientB•Severefragmentationofdecentralmaintenance•Decentralmaintenancenotresponsiblefordynamic/improvingmaintenanceofplant•Wideseparationbetweencentralanddecentralmaintenance–Nooverallmaintenanceperspective–Decentralmaintenancelargelypreoccupiedwithproduction•Combinationofcentralanddecentralmaintenance;decentralmaintenanceisnotresponsibleforplantavailability•Largeproportionofmaintenanceknow-howisatthecenter•PoorcooperationbetweenproductionandmaintenanceOrganizationstructure•Coordinationproblemsbetweendecentralandcentralmaintenance,particularlyonmajorrepairs,shiftservice•Lowtransparencyofcosts,breakdownsandimprovementsachieved•ComplexITsystemwithnopossibilityofundelayedcostcontrol•IdletimesduetofragmenteddistributionofworkshopsandlongdistancestoproductionfacilitiesOrganizationprocedures/processes6981016DU4_161821_021.v3Source:McKinseyTYPICALCOMMENTSONMAINTENANCE–CLIENTAANDBEXAMPLESIt‘smaintenancethatcausesthemaintenancecostsTheshiftsalwaysturnupasatwo-manteamevenforminorfaultItisoftensimplertosubcontractexternallythangetcapacityfromthecenterWhatcountsisplantavail-ability,thecostsofmain-tenanceareincidentalIonlyknowwhatthemaintenancecostsarefromtheinternalservicesaccounts–andtheycomesixweekslaterTheplantisdownfor30minutesbeforet...