Graham
Cummings, Management Consultant, Marcam Corporation, Toronto, Canada
After reviewing the case study, we consider the highlights of the Aufkie
Music's current situation to be:
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There is no centralized system of records available for equipment data,
work information, spare parts inventory records, purchasing information,
and reference drawings.
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No clearly defined maintenance and maintenance and repair organization
materials management performance goals or strategic directions have been
spelled out by senior management.
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The maintenance organization does not focus on understanding then eliminating
repetitive problems.
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The goals of the 2 maintenance engineers are unclear and as a result they
may be underutilized.
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The stores organization has no records-keeping to support analysis of whether
they have the right stock, too much inventory or not enough.
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No spare parts lists records are available to assist with identifying which
stocked and non-stocked materials may be required to repair specific equipment.
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Much of the plant equipment was designed and built in-house and requires
specialized technician skills and tools to maintain.
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The 2 plants do not share valuable information about their repetitive equipment
problems, repair costs, spare parts inventory requirements, and contracts
with common suppliers.
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It is assumed that both plants are located a significant distance away
from major industrial centers, so spare parts delivery lead-times of 2-3
days are quite common.
Aufkie Music first needs to establish
a vision of how its maintenance organizations should be run to optimize
the cost of maintenance while at the same time maximizing equipment uptime
and equipment throughput. Deciding on the best strategy should be driven
in large part by each alternative's potential to increase equipment uptime
and throughput while controlling or reducing the manufacturing cost per
unit.
Recommendations
Implementing the changes recommended by Peggy Banke may not be the
most effective way to meet the company's objective to improve profits.
A number of steps should be taken before the Maintenance organization decides
on an appropriate course of action.
Aufkie Music first needs to establish a vision of how its maintenance
organizations should be run to optimize the cost of maintenance while at
the same time maximizing equipment uptime and equipment throughput.
Either by working with professional maintenance consultants or through
a process of benchmarking other maintenance organizations that are achieving
World Class results, Aufkie's maintenance managers need to define work
processes and performance indicators that focus on achieving these goals.
The decisions made during this process equip management to decide whether
or not to consider moving towards contracting the maintenance function(s)
or instead focus on improving the effectiveness of its own maintenance
organizations. Unlike the food and chemical industries with which Peggy
Banke has experience, most plant equipment in the musical instrument industry
is built in-house.
Repairing this equipment requires specially trained technicians using
specialty tools. On this basis it would be unwise, and probably impractical
to consider replacing the entire Aufkie maintenance force with outside
maintenance contractors. Alternative strategies should be examined.
There are a number of maintenance management strategies that should
be considered as viable alternatives to the contracting option. Deciding
on the best strategy should be driven in large part by each alternative's
potential to increase equipment uptime and throughput while controlling
or reducing the manufacturing cost per unit. A four stage strategy would
seem appropriate:
Stage 1. Improve tradesman productivity by introducing work planning
and scheduling.
Stage 2. By applying reliability centered maintenance analysis
techniques to the plants critical equipment, address repetitive equipment
failures that can be solved using cost effective engineered solutions.
Stage 3. Identify appropriate preventive maintenance activities
and predictive maintenance technologies that can be used to eliminate the
repetitive equipment failures for which there are no cost effective engineered
solutions.
Stage 4. Optimize the spare parts inventory then identify the
costs and quantifiable benefits associated with maintaining plant storerooms.
On the basis of this data, investigate the potential savings that could
be achieved by having Aufkie supplier(s) manage the maintenance and repair
inventory.
After the functional CMMS has been implemented
and the initial Aufkie maintenance and materials management business process
changes have been made, the organization will be equipped properly to monitor
maintenance costs, equipment downtime statistics, and manufacturing capacity.
Since the Information Systems Manager has an understanding of object linking
and embedding and object technology software, he may consider investigating
an asset management solution.
None of the tactical steps needed to implement the four elements of this
strategy can be achieved without the ability to capture and analyze meaningful
data. The Aufkie CMMS needs to be replaced since it is not equipped to
assist with implementing the strategy; nor is it able to measure whether
the chosen strategy leads to the improvements expected. A cost/benefit
analysis should be undertaken to justify the need for a new CMMS. Peggy
Banke should be involved in this project to ensure her buy-in. Once the
justification has been completed, the search for a CMMS can begin.
When searching for a replacement CMMS, Aufkie Music needs to ensure
that they select a system that will adequately support their chosen business
processes and be capable of measuring their chosen performance indicators.
Since Aufkie management may choose to consider alternative maintenance
management strategies in the future, the system they select must have the
capability to adapt to changes in the organizations business processes.
They also need to look for one system that meets the needs of both plants
in order to take advantage of sharing information about repetitive equipment
problems, repair costs, spare parts inventory requirements, and contracts
with common suppliers. In essence, the system they select must be very
agile and scaleable.
Besides being capable of supporting the standard CMMS functions, such as
equipment records, spare parts lists, work planning, work scheduling, predictive
and preventive maintenance triggering and tracking, stock records and transactions,
stock reserves, picklists, and so on, Aufkie must select a system that
can be tied easily to the plants' business applications, condition monitoring
systems, and production control systems.
Since the Information Systems Manager has an understanding of object
linking and embedding and object technology software, he may consider investigating
an asset management solution - an object oriented solution. Through state
of the art technology and workflow functionality, business process can
be created and tailored easily to meet the organizations changing needs.
By using object linking and embedding it is very easy to integrate the
CMMS with the other plant systems. It is also very easy to attach drawings,
notes, material safety data sheet information, and so forth, to equipment
records, work order records, and other appropriate records.
Once a replacement CMMS has been selected, a proper implementation plan
should be developed with the software supplier to ensure that the system
is implemented as quickly and cost effectively as possible. Peggy Banke
should be an active participant in CMMS selection and implementation processes.
After the functional CMMS has been implemented and the initial Aufkie
maintenance and materials management business process changes have been
made, the organization will be equipped properly to monitor maintenance
costs, equipment downtime statistics, and manufacturing capacity. The need
to adjust or consider alternative maintenance strategies and tactics can
then be addressed in a meaningful way.
Copyright April 1997 Plant Services on
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