CERTIFIED MAINTENANCE AND

RELIABILITY PROFESSIONAL
TRAINING

Pillar - 5

1
Pillar – 5: Work Management
What is Work Management ?
Identify, Validate and Approve Work

Prioritize Work

Plan Work

Schedule Work

Execute Work

Analyze Work and Follow Up

Measure Work Management Performance

Manage Resources and Materials

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The Basic Work Management Process (1/2)

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Work Management
Focusing on the skills and process to get the maintenance and reliability effort What is Work Management ?
done. This includes planning and scheduling activities, quality checks on • Identify, Validate and

maintenance, and the storeroom Approve Work

• Prioritize Work
3.1 Identify and Approve Work Processes • Plan Work
Maintenance Processes Demonstrated Through the P-F Curve • Schedule Work
• Execute Work
What follows a series of slide showing key maintenance
• Analyze Work and Follow
processes as they are laid out of the P-F Curve
Up
• Measure Work
Management Performance
• Manage Resources and
Materials

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Maintenance Processes Demonstrated Through
the P-F Curve #1

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Maintenance Processes Demonstrated Through
the P-F Curve #2 - 4

2 3

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Identifying and Validating Work
Those identifying work necessary to keep equipment running properly must understand the
different types of actions that can be taken and when they should be applied

Likewise, there must be a general understanding of what makes maintenance work relevant and
necessary

Maintenance work must be managed and controlled which is normally the purview of a backlog
management effort to minimize overdue work

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Inputs to Work Identification
Planning, scheduling, and the execution of the storeroom functions are greatly enhanced when
maintenance work is identified early and correctly

Maintenance and reliability leaders must understand the required inputs to work identification

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Work Identification
We want everyone in the organization to have the ability to identify and report anything that is not
correct or that they have a concern with

Consider the associates as your eyes and ears as to what is really happening at your location

Anyone in the organization should have the ability to request work from the maintenance
department

We need to define the process steps for an associate to identify and report an issue through
appropriate channels

Just because an issue has been identified and properly reported, doesn’t guarantee that anything
will be done about it, or done anytime soon

The work request must be validated

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Validate Work
Organizations commonly use methods such as Failure Modes and Effects Analysis (FMEA) and Reliability
Centered Maintenance (RCM) to identify necessary planned work

As a result of utilizing these methods, the resulting work task has to be validated and classified as to work
type (preventive, predictive, etc.)

Other work identified through other means (failure reporting or the result of a PM) are validated for
approval to expend resources in correcting and classified accordingly (corrective, emergency)

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Work Validation
There are three types of maintenance work:

 PM work including CBM/PdM

 CM – New work resulting from PM/CBM activities

 CM – Breakdown/emergency work (Reactive)

Preventive Maintenance (PM) work should have already been planned, therefore going directly to
scheduling.

Corrective Maintenance (CM) breakdown/emergency work can be executed while bypassing the
planning and scheduling process.

The new CM work identified from PM tasks including CBM activities should be planned and scheduled
before it is executed

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Pillar – 5: Work Management
What is Work Management ?
Identify, Validate and Approve Work

Prioritize Work

Plan Work

Schedule Work

Execute Work

Analyze Work and Follow Up

Measure Work Management Performance

Manage Resources and Materials

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ID, Prioritize and Approve
What is Work Management ?
• Identify, Validate and
Approve Work
• Prioritize Work
• Plan Work
• Schedule Work
• Execute Work
• Analyze Work and Follow
Up
• Measure Work
Management Performance
• Manage Resources and
Materials

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3.2 Work Prioritization Process
Prioritization Process
To effectively manage resources, a work prioritization process must be conceived, defined, documented
and communicated

This effective prioritization tool will assure that

 Serious problems are addressed quickly (safety, environment)

 Failures on critical equipment are quickly addressed and restored

 Project work is properly prioritized based on well understood parameters (time, expense, etc.)

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Work Approval
The work request must be formally reviewed for approval, and feedback must be given to the requestor
as to the status of the request

Maintenance has the responsibility to provide a quick and complete review of the request

New work requests must be reviewed every day, this process is often referred to as the work order
approval meeting

It is during this formal work order approval meeting that the leadership decides what work truly has to get
done and in what priority

The work request has to be completed correctly by the requestor

If the work request is not completed correctly, the approver should send it back for correction

The actual priority is assigned to the approved work order by the approver

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3.3 Planning Process
Maintenance Processes Demonstrated Through the P-F Curve

1 2

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Establishing the Priority (1/2)
The requestor sets the initial priority

The requestor must communicate how important the need is from their perspective In the larger scheme
of things, the requestor’s need may be very low in priority

A common method used to establish priority in a plant or facility is to compare the importance or
criticality of the asset with what the maintenance need is

One of the most common tools is the RIME chart, Ranking Index of Maintenance Expenditures

When putting a RIME chart together, the first course of action is to determine the criticality of the Assets

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Establishing the Priority (2/2)
An example of priority definitions and criteria using priority 1,2,3:

 Priority 1 – Failure to perform work will result in death, severe injury, significant damage to company
equipment, or major loss of production

 Priority 2 – Failure to perform work may result in injury, damage to company equipment, or major loss
of production

 Priority 3 – Failure to perform work may result in loss of equipment integrity, adherence to reliability
procedures, or general order and discipline

The description of a priority should include:

 The definition of that priority in exact terms

 An example of that priority actually occurring in the facility

 The response maintenance is to take

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RIME Index Table – Ranking Index for
Maintenance Expenditure

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RIME Chart – Ranking Index of Major
Expenditures
The product of these 2 factors give an index of the
relative importance of the maintenance work to
both facility/production and maintenance
management.

The process of establishing the relative

importance of priority of a maintenance job is
known as RIME.

Ranking Index for Maintenance Expenditures

(RIME) Asset criticality also provides us with a
method to manage assets through work
prioritization.

The method of ranking maintenance expenditures

is based on an index that combines both the
“work classification” ranking and “asset criticality”
ranking, to produce a single “RIME” number that is
then used by Planners, Schedulers, and Materials
Management to prioritize the weekly workload.

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Prioritize

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Prioritize
Prioritization Classification Asset Criticality
Prioritization Asset Criticality Ranking
Used for new and backlog work. Severity – what will happen if the failure
Simple work priority ranking occurs; cross-functional considerations such
1. Urgent do it immediately. as:
2. Important do within next scheduling period.  Safety
 Regulatory Compliance
3. Routine do within the next four scheduling
 Operational Impact
periods. Maintenance Costs, etc.
4. Low priority fill-in work. Likelihood – what is the probability it will
happen in a month, quarter, year, 5 years…
Prioritization Classifications should
be based on Asset Criticality criteria. Detectability – how likely can a defection or
warning sign be noticed.

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Prioritize Tools & Processes
Asset Criticality Evaluation Prioritization Process
Production Schedule  Documented and plant-wide authorized process

Safety and Regulatory Requirements for prioritization

 Publish and train all personnel.
Prioritization Model (ISO 14224)
 Criticality Assessment Process
 Operational
 Identified-Work Prioritization Process
 Safety
 RIME Work Ranking
 Environmental
Audit Process.
 Single-Point Failure
 Be attentive; notice compliance and non-
 Maintainability
compliance.
 Reliability
 Be assertive; appreciate compliance, address
 Spares Lead Time
Prioritization Classifications should non-compliance.
be based on Asset Criticality criteria.
RCM or FMEA/FMECA of most critical assets Outliers – have a procedure to review work
requests that don’t fit the prioritization scheme.

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Pillar – 5: Work Management
What is Work Management ?
Identify, Validate and Approve Work

Prioritize Work

Plan Work

Schedule Work

Execute Work

Analyze Work and Follow Up

Measure Work Management Performance

Manage Resources and Materials

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The Six Maintenance Planning Principles (1/2)

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The Six Maintenance Planning Principles (2/2)

SLIDE No. 26 OF 120

SLIDE No. 27 OF 120
Plan the Work
The Planner’s job is to optimize work force productivity and work quality by
planning and coordinating labor, parts, equipment access, etc.
To do this, planners develop job packages that include procedures, references, materials, tools, equipment, parts,
permits, etc.

 Review Work Order

 Perform Field Check

 Check parts availability

 Prepare (or Modify Existing) Job Plan

 Prepare Craftsperson’s Job Package (Parts, Equip, Permits, etc.)

 Forward Completed Job Package for Scheduling

 Gather Craftsperson’s Feedback After the Job is Complete

 Update & Save to the Job Plan Library

Minor tasks and PM/CdM may not require formal job plans but may still require parts and other planned items.

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Planning Process (1/2)
Planning defines what work will be accomplished and how

Goal : The planning process is to identify and prepare a maintenance craft person with the tools and
resources to accomplish this work in a timely and efficient manner

Planning is the key enabler in reducing waste and non-productive time, thereby improving productivity
of the maintenance workforce

What if the scope of the work not been defined clearly ?

The maintenance planner must
1. Talk to the requestor 4. Procedures
2. Visit the job site 5. Specifications
3. Identify what steps 6. Tools are required to perform the job correctly

The work to be performed must be clearly understood

Note - Planning pertains to the process of creating a plan of which materials and resources will be required to fulfill
incoming and forecasted demand. ... Scheduling pertains to establishing the timing of the use of specific
resources of that organization.

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Planning Process (2/2)
The skill level of the person required to perform the work must be identified with the estimated hours

The skill of the maintenance workforce and basic understanding and knowledge of their trade and plant
Assets will determine the level of detailed steps and work instructions required in the planning process

Note: The role of the Maintenance Planner is to improve work force productivity and work quality by anticipating and
eliminating potential delays through planning and coordination of labor, parts and material, and equipment access.

Develop steps and procedures with specifications identified to ensure high work quality

Have the parts available on site before the job is scheduled

Note: Materials, including parts and kit lists, must be identified

Insure the work is completed without delays

Note: Identify special tools need

Have a planning checklist to ensure that all the steps and documentation have been prepared or
arranged

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Plan the Work Tools & Processes
CMMS or EAM Well-Defined Planning and Scheduling
Estimating Guides Process
 Allow plenty of time for precision Work Identification Prioritization
maintenance practices! Work Scoping Procedure
Safety Procedures (LOTO, confined space, hot  Standard format for capturing scope,
work, working aloft) task steps, parts, labor, etc.
P&S Software Procedure for adding job plans to the library
Tech Manuals, Machinist Handbook, Industry Library of Procedures
Standards BOM/Parts Usage Data
Job Plan Library
Measures; actual vs. estimated time, parts
accuracy, time to plan

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Schedule the Work
The purpose of work scheduling is to incorporate labor schedules, balance
resources, minimize the effect of break-in work, coordinate parts, materials
and shared equipment, etc.

Making sure resources are available at the right time:

 Labor schedules determine the type and quantity of labor available.

 Production schedules determine access to equip without disrupting production.

 Prioritization of tasks minimizes break-in work effects.

 Kitted parts, materials and shared equipment minimize idle and travel time.

Scheduling should only happen for planned work when all planned items are identified and
confirmed.

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Schedule the Work
Backlog management - Ready to Schedule.

 All known work that has been through the planning process; detailed or simple job plan.

Who will do the work and when the planned activities are to be carried out.

 Depends on commitments from each work center (maint & ops, contractors).

 Tradesperson skill sets/qualifications and available work hours define workforce loading and volume of work
orders to be accomplished.

 Shutdown, turnaround and outage (STO) plans can be used to bundle work orders for scheduled downtime
periods.

Planning identifies and ensures materials, equip, tools, permits, etc. are available, but scheduling
determines when they are required.

PM and CdM typically must be performed at known intervals.

 These should be the first items scheduled, and the last that have their schedule broken.

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The Six Maintenance Scheduling Principles (1/2)
Job plans providing number of person required, Lowest required
craft skill level, Craft hours per skill level and job duration
information are necessary for advance scheduling

1. Weekly and Daily Schedules must be adhered to as closely as Possible.

2. Proper priorities must be placed in new work orders to prevent undue
interruption of these schedules

SCHEDULER : Develops a one week schedule for each crew based on a craft hours
available forecast that shows highest skills level available, Job Priorities, and information
from job plans.
Consideration is also given to multiple jobs on the same equipment or system and of
proactive versus reactive work available

1. The one week schedule assigns work for every available work hour.
2. The schedule allows for emergencies and high priority, reactive jobs by scheduling a sufficient
amount of work hours on easily interrupted task.
3. Preference is given to completing higher priority work by under-utilitizing available skill level over
completing lower priority work

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The Six Maintenance Scheduling Principles (2/2)

1. Crew supervisors develop a daily schedule one day in advance using current job
progress, the one week schedule and new high priority, reactive jobs as a guide.
2. The Crew supervisor matches personnel skills and task
3. The crew supervisor handles the current day work and Problems even to re-scheduling
the entire crew for emergencies

1. Wrench time is the primary measure of workforce efficiency and of planning and
scheduling effectiveness.
2. Work that is planned before assignment reduces unnecessary delays during jobs and
work that is scheduled reduces delays between jobs
3. Schedule compliance is the measure of adherence to the one week schedule and its
effectiveness

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3.4 Scheduling Process
Maintenance Processes Demonstrated Through the P-F Curve

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Implementing a Scheduling Process
The scheduling process incorporates the planning process in that it enables effective
execution of work

Scheduling maintenance work must take into consideration the needs of the plant and
other groups

This often requires balancing all of the factors to achieve a workable schedule considering
other needs of the equipment

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De-Conflicting
Many times, in a dynamic setting, demands are high for equipment use.

Therefore, this connection in needing the equipment must be well understood

Scheduling starts after the planning process is complete

The scheduling process looks to ensure that resources are available at a specific time in
accordance with the needs of the job as planned

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Effective and Efficient
The scheduling process must work to optimize labor and materials resources used in the
execution of maintenance

Work schedules and job requirements are confirmed during periodic scheduling meetings
to discuss production requirements, material availability and backlog work

Scheduling efforts need to be monitored, measured, and analyzed to confirm that

performance expectations are being met

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Scheduling Process (1/3)
Scheduling
Identifies : When the work will be completed
Who will do it How to develop a
Ensures : That resources will be available for maintenance at Schedule ?

a specified time and place The scheduler works

with operations and
Note : Resources are Personnel, material, tools, facilities and the asset
maintenance supervision
on which the job is to be performed
to develop a schedule that
Scheduling is a joint maintenance and operations activity in which
optimizes operations
maintenance agrees to make resources available at a specific time needs with the availability
when the asset can also be made available by the operations and capacity of the
Strategies for scheduling plans Eg: Monthly, Weekly, Daily, and maintenance resources

Rolling quarterly, and Yearly schedules

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Scheduling Process (2/3)
How schedules are built ?
Re-prioritize jobs to attend to the most pressing problems first

Outcome : Majority of the available time remaining in the

schedule is filled with jobs that are selected in accordance with
management’s priority, or other important criteria

Which job should be given high priority ?

Preventive maintenance jobs

Reason : They need to be scheduled to meet their due dates

Note : Once a job is on the schedule, the material list should go to the
MRO store for parts kitting and material staging before the specified
schedule date

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Scheduling Process (3/3)
In addition, the job work package will be delivered or made available to the individuals who will
execute the job

The maintenance personnel will have everything they need for the job:

 A work permit to execute the job

 Asset ready to be released by operation personnel

 Material/parts on hand including specified tools and material handling equipment (or at site)

 Right maintenance personnel with proper safety measures and appropriate PPE

Note : There should be no delays when the maintenance personnel arrive at the job site

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Schedule the Work Tools & Processes
Production schedules Planning process

Workforce schedules  Estimates labor, materials, permits, etc.

Planned work ready to schedule  Workload and work center matching;

Weekly planning meetings  Balancing availability with resources required to accomplish the

Daily schedule status updates work.

Measures (workforce scheduled, sched  100% or 80% loading?

compliance, PM/CdM completion, etc.) Ready to Schedule Prioritization

P&S software  PM/CdM high priority!

Estimating guides (locally developed,  Scoring procedure to select most appropriate scheduling

industry guides) candidates.

Equipment and special tools  Low priority ready-to-schedule aging factor to ensure they get done.

management. Weekly Planning Meeting

 Mandatory meeting with key maint, ops and support decision-
makers.
 Sets the schedule for next schedule period.
 Discuss previous schedule issues.

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3.5 Execute Work
Maintenance Processes Demonstrated Through the P-F Curve

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Developing Job Packages
Job package creation requires to use of knowledge and general information about:

 The asset in consideration

 Job tasks and sequence

 Tools and materials needs

 Job skills requirements

 And work environment (shifts, operating context)

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Job Package
Job package is assembled and communicated prior to job execution the package
typically contains:

 Work scope details

 Procedures

 Regulations and specifications (if necessary)

 Required tools and materials needed

 Other supporting documentation as warranted

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Execute the Work
Applying labor, materials, tools, equipment and services to perform work with
precision, as efficiently as possible, while conforming with environmental,
health and safety requirements.

Within the work management process, define how scheduled work orders are assigned to individual
tradespersons.

Organization and leadership is used to manage productivity and EHS compliance.

Leaders must support their team members to ensure they can do high-quality work.

 Adequate resourcing and time allocations are needed to ensure the capability to perform
precision work.

 Use position and authority to resist pressure to deviate from precision work.

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Execute Work
When Maintenance should be conducted ?

When equipment is naturally available, normal scheduled non-production periods

Execute Maintenance on day shift, Monday thru Friday

Reason : For resource availability and contingency operations

The strategy should be to execute planned and scheduled maintenance during normal business
working hours as much as possible

Normal business hours are considered for our facility, our contractors, and our vendors

Planned maintenance includes

1. PMs and corrective

2. Routine maintenance

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Execute the Work Tools & Processes
CMMS or EAM
 Should include an archive of precision maintenance procedures for reference.
 Ability to document start and completion date/time, add notes, confirm parts used, etc.
Work order templates so tradespersons and others know where to look for important information about the work
order.
Work packages of kitted parts, permits, reserved equipment and special tools.
Quality assurance and quality control practices for maintenance and repair commissioning and validation.
Well-defined and compliance with permit & safety program requirements
 Confined space, LOTO, hot work, working aloft, PPE…
Skills assessment and training program.
 Training should be provided to close position description skills gaps.
 Additional training to develop additional skills.
Attentiveness and assertiveness of supervisors.

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Managing Labor and Material
You will benefit greatly from understanding best practices for the effective use of
maintenance resources

The skilled abilities of the skilled trades must forever be growing and evolving

The systems used to direct, inform, and transmit work information and needs must be readily
available and processes followed

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Resources, Cost and EHS (Environment, Health,
and Safety)
Executing work often required gaining access to much needed spare parts.

This capability is vital to successful work accomplishment

Since executing maintenance work routinely involves labor and material expenditures,
these costs must be tabulated and evaluated against fiscal budgets

To ensure a safe, healthy and environmentally compliant workplace, the EHS guidelines
should be known and followed during all work execution

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Model Routine for Executing Planned and
Scheduled Maintenance Work (1/2)
The operator is aware of scheduled maintenance; machine is still running

The maintenance technician arrives on time; with materials and equipment

The maintenance technician and operator discuss other issues that might be present

If there are other issues, the maintenance technician will call their supervisor to the machine

The maintenance technician asks the operator to keep the equipment running while the maintenance
technician walks around the asset performing a look, listen, and feel inspection

The maintenance technician will alert the operator and the maintenance technician’s supervisor if
other concerns are detected

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Model Routine for Executing Planned and
Scheduled Maintenance Work (2/2)
The maintenance technician instructs the operator to clear out their machine, and shut it down in a controlled
manner
The maintenance technician locks out the machine
The maintenance work is executed
The maintenance technician removes the lock out
The operator restarts the machine while the maintenance technician is still present
The operator runs five ‘good’ parts (or the equivalent)
The operator confirms the proper operation
The operator signs off on a survey on the back of the work order indicating their satisfaction with the maintenance
that was accomplished
The maintenance technician signs off on the survey on the back of the work order indicating their level of satisfaction
on how ready the asset and operator were for the scheduled work
The maintenance technician completes the work order
The job is done

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Document the Work
Accurate, detailed documentation will provide information on resource
utilization, information for continuous improvement of the planning, scheduling
and equipment reliability strategies, as well as actual labor, materials,
contractor costs and system downtime.

The work management system is the focus of a CMMS/EAM.

Condition found remarks are important for confirming failure modes and effects.

Planned versus actual labor hours, materials and contractor costs helps to develop more accurate
budget projections and better work order planning and scheduling.

As-found and as-left conditions can be used for repair/replace, shutdown/turnaround planning and
capital project planning.

Measuring points, such as run hour meters and cycle counters can be used for interval-based
maintenance procedures and reliability measures (MTBF/MTTF).

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Schedule the Work Tools & Processes
CMMS or EAM Post-Work Documentation Process
 Repository for all asset, work order and procedure  Reason for repair.
documentation.  Corrective actions taken.
Work orders  Component failures noted.
 The primary means to state what is required and to  Indications of process, operation or other contributing
document what was found and what was done. factors.
BOM and Inventory/Stores  Warranty period review.
 Means to identify parts/sub-assemblies.  Identify skills/training gaps.
Failure Reporting Work Management
 Confirms/refines failure modes & effects; damage,  Planning and scheduling strengths and weaknesses;
cause and remedy codes. what could have been done better.
Document Control Maintain History
 Processes and procedures are current.  Equipment maintenance history can be used for life-
Configuration Management cycle costing, ROI calculations, Pareto analysis,
 Systems in the field match documentation. process improvements, safety procedure
improvements.
 Inventory is aligned with configuration.
 Repair/replace decisions, percent of RAV calculations,
etc.

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Analyze and Follow-Up
We don’t collect work order data just to collect work order data.
We must compare actual performance with planned performance.

Job plan analysis and improvement

 Reduce or eliminate inconsistencies and increase quality.
 Identify all elements that lead to precision maintenance, increased reliability, safety and
regulatory compliance.
Equipment reliability analysis and improvement
 Based on work order data, is equipment reliability improving?
 Identify assets that are bad actors or getting better or worse and why.
Cost analysis and improvement
 Total cost per unit produced and maintenance cost per unit produced.
 Be careful not to optimize maintenance cost, while increasing total cost or reducing OEE.

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Analyze and Follow-Up Tools & Processes
Work Order Data (Accurate) Comparison
Equipment History  Current Work Orders versus Historic Work Order
 MTBF and MTTR. Patterns.

 Maintenance Cost Data (Labor, Materials and  Comparison of Benchmark Cost Data with Current
Contracts). Work Order Performance.

 Availability. Identify Variances

 Pareto Analysis (Bad Actor List).  Work Management Metrics

Benchmark Data  Equipment PM/CdM Compliance, etc.

 Other plants in the same company. Updating Job Plans

 Competitors, Similar Products/Services.  Improve Quality.

FMECA and RCM  Reduce or Eliminate Variances.

 Ambiguities, Gaps or Overlaps in Equipment Reliability Preventive Maintenance Optimization (PMO)

Strategies. Review/Update Resource Requirements
RCA  Review/Update Materials Management.
 Wholistic Analysis of Management Guidance, Assets,
Human Error…

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Measure Work Management Process
It is important to measure performance of the work management process to
determine the current state of performance, to identify gaps between current
and expected performance and to develop the necessary improvements.

Performance measurement and management

Quality management

Leading and lagging measures

Work management process effectiveness

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Measure Work Management Process Tools &
Processes
CMMS or EAM Work Management Process Assessment
 Data on work management process.  Monthly/quarterly to semi- annual/annual,
Work Management Metrics depending on maturity.
 Measures for managing work requests  Performance measurement & management.
and work orders.
Communications with Leadership
 Target values.
 Identify or confirm priorities.
 KPI scorecard.
 Solicit support for compliance.
 Dashboards to keep others informed.
Continuous Improvement
 Inputs for status review meetings.
 Identify SWOTs.
 See list of metrics on next slides.
 Assess and define responses.
Work Management Process Gap Analysis
 Authorize and implement improvements.
 Identify/Implement improvements.

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Use IT Effectively
Leveraging the capabilities of data historians, process control systems,
condition monitoring software, CMMS/EAM data, etc.

Develop an Information Management Policies and Processes

Apply Technology for Documentation and Record Keeping

Leverage Data Management Functions of a CMMS or EAM

Apply Preventive and Condition Monitoring Information Technology

Integrate Process and Equipment Monitoring Capabilities

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Use IT Effectively Tools & Processes
CMMS or EAM Document Management Process
Document Control/Management Software
Equipment History & BOM Data Management
Simulation & CAD Software
Process
Project Management Software
Work Control Process
HMI Software
 Planning and Scheduling.
SCADA or Data Historian
 Interfaces with Accounting, Personnel and
Work Management Metrics
Materials Management.
Project Management Metrics
Process Safety Management

Data Analytics Processes

Calibration & Inspection Management Processes

Version Control for PLCs, Instruments and Other

Software

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Manage Resources & Materials
The maintenance function should identify what to buy, when to buy, who to buy from, what
to keep in stock and what inventory should be eliminated. There must be effective control
of storerooms and inventory related costs while maintaining an expected level of service.
There must be accurate documentation of equipment components and parts in the CMMS
along with recording information after completion of maintenance activities.

Critical Equipment and Critical Spare Parts

Materials and Resource Demand Forecasting

Bills of Materials, Equipment Spare Parts, Where Used and Quantities

Inventory Management (Max-Min, Shelf-Life, Proper Organization and Storage)

Life-Cycle Analysis (Initial Cost, Service-Life, Holding Costs and Disposal Costs)

Procurement, Issuance, Restocking, Rationalization and Disposal Processes

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Manage Resources & Materials Tools &
Processes
Storeroom ABC Analysis Part/Equipment Specification
Spare Parts Criticality Analysis  Quality versus Cost
Demand Forecast Analysis  OEM Standardization
 Manufacturing Resource Planning  Storage Condition Requirements
Materials Requirements Planning Inventory Control Process
 Automatic Replenishment  Adding/Deleting Inventory Items
 Economic Order Quantity  Max-Min Levels/Reorder Points
 Standardization  Access; Shift Hours & Off-Shift Hours
Supplier Selection Criteria  Vendor Stocking Contract Management
Parts Kitting Life-Cycle Costing Process
Storeroom KPIs  Initial cost
 Inventory Turns, Service Level, etc.  Annual Holding/Carrying Costs
 Cycle Counting for Inventory Accuracy.  Rationalization of Dead Stock
Work Order Parts Kitting Process
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Work Management is all about

Right Job Priority / Criticality

Right People Best skills and Numbers of Personnel

Right Parts Stocks and Available

Right Time Minimum interruptions to operations

Right Information Data and Drawings

Right Learning Close out and Fault Finding

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The Asset Reliability Process identifies what's
required to manage the maintenance function.

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Work Management
Consists of 6 elements

Close out &

Approval & Execution-
Work Request Planning Scheduling- analysis—
& Identification
Prioritization Doing the
What & How? When & who? Continuous
work
improvement

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CMMS Workflow

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CMMS Examples

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Module Overview
This module hereafter focuses on the skills used to get maintenance and reliability work done including:
Planning and scheduling, Quality Assurance and Store inventory management.

 Identification of work
MAINTENANCE PLANNING ENABLES MAINTENANCE SCHEDULING
 Prioritization

 Planning

 Scheduling

 Supervising

 Executing

 Close out and Analyzing

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What should a work request contain? (1/5)
MANDATORY MINIMUM
Who is submitting the request
Correct Asset Number/ Location
Reference to the equipment/ Component that is showing a negative symptom
What symptom was found
Date of request

STRONGLY SUGGESTED
A suggested prioritization rating for the work request, following standard
documented and trained guidelines.
How the problem was discovered
 Regular Inspection
 Ad-hoc

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What should a work request contain? (2/5)
INSUFFICIENT INFORMATION
If the work request does not allow the individual approving or rejecting it, to
understand what symptom is to be researched on what equipment, the work
request is not complete.

Work request should keep from

 Suggesting solution (Example: Change PUMP)

 Retroactively being used to log solved issues (Example: Fixed heat Exchanger)

 Have priorities that depend solely on the personal feelings of the submitter

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What should a work request contain? (3/5)
APPROVAL OF PRIORITIZATION
Approval or rejection of work requests should happen in a central position for each area that
shares resources
It should happen no less than on a daily basis, so that clarification can be sought.
All work submitted should be prioritized in the same way across all area that shares resources.
There should be documented guidelines, as in the example shown, on what the priority should be.

PRIORITIZATION MEETINGS
Daily work request review(approval and prioritization)

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Daily Notification Review

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What should a work request contain? (4/5)
BACKLOG REVIEW
Backlog review are essential part of making sure that work is still required, correctly prioritized and
Progressing.
Backlog review for each review should be held every 3-6 weeks for the entire area.

WORK ORDERS
Work orders are out tool for managing what needs to be done, how we will do it,
when and by whom.
They capture history and record cost.
They need to be planned, Scheduled, executed, Get feedback record and they
analyzed for improvements.

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What should a work request contain? (5/5)
PLANNING AND SCOPING
Planning is defining what to do and how to do it.
A large part of planning is repetitive in nature.
Maintenance work done once will most likely repeat some years later.
Finalizing planning for individual assets require scoping them out in the field

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 WORK MANGEMENT
SUPPORT PROCESS- TECHNICAL DATABASE
(Master Data)
Overview
This section relates to what information should be structured in the technical database and
clarifies terms and definitions related to those.

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Terms (1/4)
TECHNICAL DATABASE
All sources of technical data.
This include hardcopy and digital system.

COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM (CMMS)

The computer software/ system that keeps track of all work orders and the umbrella around
preventive Maintenance Task.

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Terms (2/4)
TAXONOMY
The study of the general principles of scientific classification systematics
Classification especially: Orderly classification of plants and animals accordingly to their
presumed natural relationships
Taxonomy therefore includes
 All text data used for classification and recording on description of an asset. This can be:
• Nameplate data
• OEM text description
• Plant text description
• Equipment Class
• Preventive Maintenance Task
Taxonomy will not include equipment drawings or non-text attributes

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Terms (3/4)
CMMS DATA FLOW
The CMMS ties together record of the Assets and the work needed to keep them in operation.
All work done to an asset should be recorded onto work order and every work order should be
assigned to an asset.

ASSET HIERARCHIES (1/2)

Asset hierarchies can be structured by 3 main categories.
 Physical Location
 Functional Application
 Activity being conducted.
Asset hierarchies are often a mix of these. With one strategy being dominant at one level, and
others at other levels.

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Terms (4/4)
ASSET HIERARCHIES (2/2)

Hierarchy Structure:

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Hierarchy in the CMMS

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Cost and Investment
It is important that all cost of maintaining assets can be assigned to individual assets.

This allows for cost and investments to be correctly calculated and is therefore an enabler
for actively based budgeting also known as ZERO-BASED BUDGETING.

In this approach, which is the most ideal, the maintenance budget for a subsequent year is
built up by modelling and forecasting, starting of budget of 0, for the following.

Recurring activities

Major Operational Expense reinvestments

Expectation on corrective measure required.

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Failure and System Code
Failure and symptom code should only be
used if they meet the following criteria:

Allow the selection of multiple failure causes or

codes; or

Only lead to a single possible cause to be

selected, without ambiguity

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 WORK MANAGEMENT
SUPPORT PROCESS- MATERIAL
MANAGEMENT
What will we cover?
Calculations and Terms

 Bill of Materials

 Economic Order Quantity(EOQ)

 Reorder Point

 Lead Time

 Safety Stock

 Kitting

 Staging

 Measurements of Performance

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SLIDE No. 87 OF 120
SLIDE No. 88 OF 120
Inventory Types
Inventory Turns = Inventory issued in a year/Average Inventory

Average Inventory = (Beginning Inventory + Ending Inventory)/2

Inventory in a Production Process (4 Categories)

1. Finished Goods

2. Work-in Process (WIP)

3. Raw materials

4. Maintenance & Operating Items

• Spare Parts

• Operating supplies including consumable

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Inventory Classifications
I. Active Inventory
Items used at least once per month
 Spare Parts (bearings, oil seals, fittings, etc)
 Commodities (gloves, lubricants, soap, tissue, etc)
 Items with high demand or predictable future demand

II. Infrequently Used items

Items used less than 10 times per year
Demand can still be predicted with some accuracy

III. Rarely Used Inventory

Must Have” items
Hard to obtain or lead time to acquire is too long
Vast majority of MRO Store items fall in this category
Cost reduction can be found by teaming with other area organizations.

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ABC Analysis (1/2)
ABC Analysis (Inventory Stratification) used to classify and optimize inventory levels based on item
value and usage rate (reflects the Pareto principle)

Goal of analysis is to reduce inventory cost by reducing quantity of items in classifications A & B.

Class C (Active Inventory)

Standard delivery time, low unit cost, very predictable demand

55-75% of total inventory; Average 65%

5-15% of total inventory cost

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ABC Analysis (2/2)
Class B (Infrequently Used Parts)
Medium delivery time, mid to high cost, predictable demand with effort

20-35% of total inventory; Average 25%

15-25% of total inventory cost

Class A (Rarely Used Parts)

One-of-a-kind parts, long delivery, high cost, low demand not predictable

10-20% of all inventory items; Average 15%

60-80% of total inventory cost

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SLIDE No. 93 OF 120
Bill of Materials (BOM)
Bill Of Materials (BOM) is a document describing what component are used to makeup an asset and in
which quantity

Bill of Materials greatly assist with Planning, by already having the number of components in the asset
specified and allowing for quick identification of the correct parts.

This also helps out with Materials Management operations allowing for optimization of spare part
holdings.

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Economic Order Quantity (EOQ)
Economic Order Quantity(EOQ) is a decision tool used for decision making on how many parts or
materials to purchase at once.

The calculation is designed to minimize ordering and carrying cost.

It goes back to 1913, when Ford W. Harris wrote an article called “HOW MANY PARTS TO MAKE AT
ONCE”.

It is also known as “WILLSON FORMULA”

The formula is useful when buying parts in a quantity higher than 2 and that have a relatively high
usage.

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Formula of EOQ
Economic Order Quantity = Square root of [(2* Demand*Ordering Cost) ÷ Carrying Cost]

Or

Visually,

Q = Economic Order Quantity (Units)

D = Demand (Units, Often annual)
S = Ordering Cost (Per Purchase Order)
H = Carrying Cost Per Unit

Economic Order Quantity uses 3 variables

1. Demand
2. Relevant Ordering Cost
3. Relevant Carrying Cost, Use these demand to setup an EOQ Formula

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Terms (1/4)
DEMAND
The demand, in Unit, for the product for specific time period.

RELEVANT ORDERING COST

Ordering cost per purchase order.

RELEVANT CARRYING COST

Carrying cost per unit. Assume the unit is in stock for the time period used for demand.

NOTE: Ordering cost is calculated per order. The carrying cost calculated per unit.

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Terms (2/4)
REORDER POINT
This is the point we will trigger a replenishment order for a spare part.

LEADTIME

Leadtime is the time required from the moment we place an order until it arrives at our
warehouse.
Leadtime influences safety stock and reorder points, as the safety stock needs to be sufficiently
large that we don’t go under it, during the lead time.

RELEVANT CARRYING COST

Carrying cost per unit. Assume the unit is in stock for the time period used for demand.

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Terms (3/4)
SAFETY STOCK
This is the absolute minimum amount of stock that we have to keep on hand at any given time.

STAGING

Act of delivering parts from the storeroom to a designed location is called Staging.
This can be either at the actual job site, or a designated area close to the location.
Staging is done to reduce the amount of travel time wasted by technicians on going back and
forth to storeroom, or on looking for parts, materials and special tools.
Kits delivered to staging areas should bear the work order number.
The work order should indicate where the parts will be located and what they will be.

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Terms (4/4)
KITTING
Work orders are picked out in advance of a job being done.
This means that all parts and materials that the storeroom delivers for that job will be placed
together in one spot.
It ensures part availability for the repair and makes them available at time of scheduling.
Work orders awaiting partially fulfilled kits to be completed, should be prioritized for expediting.
A kitting area that is secure must be found.
A good rule of thumb is to create and maintain kits for about 1-2 weeks worth of work. Smaller and
kitting is not effective. Larger and it becomes costly as it ties up too much material.

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Economic Order Quantity (1/2)
EOC is based on following assumptions:
1. REORDER POINT
 Is the time when the next order should be placed. EOQ assumes the same quantity at each
reorder point.
2. Demand, relevant ordering cost, and relevant carrying cost Customer demand for the product is
known. Ordering and Carrying cost are certain. A relevant cost refers to a cost to consider when
you make a decision.
3. PURCHASE ORDER LEAD TIME
 The lead time is the time period from placing the order to order delivery. EOQ assumes that
the lead time is known.

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Economic Order Quantity (2/2)
EOC is based on following assumptions:
4. PURCHASING ORDERING COST
 The cost per unit doesn’t change with the amount ordered. This removes any consideration
of quantity discount.
5. STOCKOUTS
 No stockout occur. Enough inventory is maintained to avoid stockout cost. That means you
monitor inventory levels carefully.
6. QUALITY COST
 EOQ generally ignores quality cost.

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Economic Order Quantity (EOQ)
A plant buys lubricating oil in 55-gallon drums and its usage rate is an average of 132 drums of oil in a
year. What would be an optimal order quantity and how many orders per year will be required? What
would be the additional total cost of ordering and holding these drums in store if ordering cost is
increased by $10/order? Plant data indicates that:

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SLIDE No. 104 OF 120
Economic Order Quantity (EOQ)
A plant maintenance department consumes an
average of 10 pairs of safety gloves per day. The
plant operates 300 days per year. The storage and
handling cost is $3 per pair and it costs $25 to
process an order.
a) What would be an optimal order quantity
as well as the total cost of ordering and
carrying this item?
D = Annual demand = 10 x 300 = 3000 pairs;
S = Ordering cost = $25/order; H = Carrying
cost = $3/pair

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Measuring Material Management
Proportion and number of expedited purchase

Inventory Record Accuracy

Number of stockout

Inventory service factor

Are the leading or lagging?

Are these others?

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Inventory Accuracy
Inventory accuracy is important for several reasons. The consequences of inaccurate inventory are:
If the part is not found in the location indicated in CMMS records, the repair can not be completed on
time, thus delaying the asset availability for operations.
An out-of-stock condition can occur because parts will not be ordered on time if the actual quantity is
lower than the system record.
If the system record number is lower than the actual inventory record, then the parts will be flagged for
reorder by the system, even if not required, resulting in unnecessary inventory.
Maintenance and operations personnel will lose confidence in the inventory system, CMMS, and in
stores management. This situation can encourage proliferation of stock items to be stored in
technician’s tool boxes or floor cabinets.
Because inventory accuracy is very critical for the maintenance store, it is important that a process is
established to ensure that high inventory accuracy of 95% or better is maintained.

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Reorder Point Calculation
Reorder Point = Lead Time Demand ( Average Daily Usage * Lead Time ) + Safety Stock
(Max Daily usage * Max Lead Time - Average Daily Usage * Average Time Lead).

Reorder Point = Lead Time Demand + Safety Stock

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Safety stock & Reorder level

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Material Management & Maintenance
Excellence (1/2)
Stores-Key Performance Indicators
The following key performance indicators are offered for your consideration.

1. Order fill-Rates

2. Stock outs

3. Inventory Returns

4. On-Time delivery

5. Inventory accuracy

6. Emergency Purchase

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Material Management & Maintenance
Excellence (2/2)
Listed are the required formulas and descriptions of each
KPI for Stores and MRO.

The maintenance manager must rank the importance of

each KPI to his or her needs.

They are ranked in four categories: C-Critical need, H-

High importance, M-Moderate need, and L-Low
importance. Performance can then be benchmarked
and compared.

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Manage Resource & Materials
Control materials and inventory

Manage parts and Equipment

Establish MRO process for procurement

Manage Contractors

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Impact of Reactive Maintenance on Materials
Management
Material shortages resulting in delayed work and/ or lost production

Lack of confidence in the warehouse to supply required materials

Develop of “Squirrel Nest”

Frequent expediting, resulting in increased materials cost and excessive premium

transportation charges.

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11 Expected Outcomes of World Class MRO
Operations

1. Optimize Inventories 8. Reduce stock-outs

2. Increase inventory accuracy 9. Increase operational efficiencies and

effectiveness
3. Identify and remove obsolete materials
10. Reduce search and downtime
4. Accurate min/max levels
11. Supplier partnerships
5. Identify overstock materials

6. Standard Operating Procedure (SOPs)

7. Reduce emergency buys

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Summary of Maintenance Key Performance
Indicators

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Summary of Maintenance Key Performance
Indicators

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Summary of Maintenance Key Performance
Indicators

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Pillar 5 – Metrix (1/2)

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Pillar 5 – Metrix (2/2)

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