FIXING Maintenance at PWCS

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FIXING Maintenance at PWCS

• Port Waratah Coal Services

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About PWCS

• Port Waratah Coal Services operates 2 coal
  loading terminals in the Port of Newcastle NSW
• PWCS is an unlisted company owned by the Hunter
  Valley coal export industry coal producers and
  some Japanese customers
• Combined capacity of the terminals is 102M
  tonnes per year
• Coal is delivered by train, stacked, blended and
  loaded onto ships for export
• Coal is sourced from about 20 mines in the
  Hunter Valley and Gunedah regions
• Most coal goes to Asian customers
• PWCS employs 380 people and is a 24 x 7
  operation with capacity to allow planned machine
  outages

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The Port of Newcastle
Carrington Terminal
Kooragang Terminal
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8,000 TPH Reclaimer
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10,500 TPH Shiploader
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Maintenance Business Constraints

• Coal delivery driven by mines
• Rail operations impacted by ARTC outages and
  other rail traffic
• Ship arrivals and departures dependant on
  weather, tides and de-ballast times
• Maintenance planning is critical to minimise
  delays to mine, rail and ship operations

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Presentation Outline

• A History of CMMS at PWCS.
• Maximo 4i implementation
• Maintenance management

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1995 - Maximo V3.03 Implemented
Maximo main uses

• Initiate PMs
• Record some corrective maintenance work
• Record some breakdowns
• Record some equipment specification data

Also There was no link to Stores, Purchasing or
Finance
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1995 - Maximo V3.03 Implemented (cont.)
Legacy Issues

• 1000s of open Work Orders progress unknown
• No detail of maintenance costs of machines
• Inefficient Stores management
• No system to use data to reduce breakdowns
• lt 6 regular users across the company
• Maximo source code modified thus PWCS were
  captives of the implementation contractor

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Other Issues

• High exposure to breakdown
• Operations Planning Dept. had no confidence in
  maintenance which made gaining maintenance access
  to equipment difficult
• Poor maintenance morale due to decline in
  equipment condition and other factors
• Use of contractors restricted by union pressure
• Poor PM completion rates
• PMs not well integrated

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The CMMS Dilemma

• Mar 99 decision to investigate implementation
  of SAP.
• Aug 00. Scoping study completed for SAP
  implementation. SAP rejected as a solution for
  PWCS
• Nov 00. Study of other software options. (Must
  integrate to Oracle 11i financials). Maximo 4i
  selected
• Mar 01 Maintenance organisation re-structured
  with defined accountabilities
• Apr 01 Re-implemented Maximo 3.03 as first
  step in the cultural change process
• Apr 02 Maximo 4i implemented

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Maximo 3.03 Re-implementation

• Used re-implementation as a catalyst for
  cultural change
• Basic principle No Work Order No Work
• Defined organisation accountabilities
• Defined maintenance terminology eg breakdown,
  work type
• Introduced a Work Flow system
• Revamped planning and scheduling systems
• Basic performance measures introduced

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Terminal Organisation Chart
BM Root Cause investigation elimination. Monitor
PM effectiveness Technical advice research
Planning Scheduling work Management of data base
Execution of weekly work schedule Repair of
BMs Monitor machine performance
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Basic Workflow
Break- down ?
BM
Y
N
Maintenance Planning PLN
CM
Preventive Maintenance WSCH
PM
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Benefits From Re-implementation

• Retraining meant more people using the system so
  computer skills increased. Many older trades had
  few computer skills (Some still struggle.)
• Allowed support systems for work management to
  be established and trialled
• More system use meant more informed ideas on
  what was needed for a replacement

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Maximo 4i Implemented April 1, 2002
Maintenance Stores Purchasing Contractor
Management
General ledger Invoicing Other Accounting stuff
Seamless Interface
MAXIMO 4.1
ORACLE 11i
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Maximo 4i Implemented April 1, 2002

• Maximo Location / Equipment Structure completely
  revamped.
• PM program rewritten and rescheduled using RCM
  Turbo.
• Stores catalogue rewritten using Auslang (7,400
  items).
• Equipment parts list items researched and
  entered (25,000)
• Crystal Reports selected as the report writer
  package.

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MAINTENANCE MANAGEMENT
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Work Order Management

• Planner Schedules work by date
• Supervisors review scheduled work 2 weeks in
  advance
• Terminal manager signs off on coming week
  outages
• Supervisors use check list to report work
  completion at weeks end
• Operations sign over machines for outage -
  maintenance sign back
• Uncompleted work can only be rescheduled or
  cancelled cannot be forgotten

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Breakdown Elimination

• Emphasis on scheduled completion of PMs
• Breakdown data reviewed weekly by Maintenance
  Team. Repetitive BMs identified for follow-up
• Top 10 BMs by frequency and severity measured
  and reviewed monthly with General Manager
• Unresolved repetitive breakdowns investigated
  for elimination
• PM system continually updated as result of BM
  investigation

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The Results

• Work Order progress can be followed using the
  W/O Status
• Machine costs are available via Crystal reports
  from Oracle. Individual Work Order costs also in
  Maximo
• Materials are reserved in the Warehouse for
  particular jobs
• Breakdown management system in place with
  declining BM frequency and severity
• Users include all trades, Contractors,
  Engineers, Stores, Purchasing.

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The Results

• Improved credibility with Operations Planning
  means easier outage access
• Vastly improved maintenance morale
• Improved contractor payment system reduced PWCS
  workload and speeded up payments
• No longer captive to the CMMS implementation
  contractor

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Lessons Learnt

• A CMMS needs support from General Manager level
• A CMMS provides the tools to focus maintenance
  resources where they can add the most value
• Implementing a CMMS by itself can be worse than
  doing nothing
• Stick to Out of the Box software
• The cultural change process is critical
• A disciplined work management system is
  essential

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QUESTIONS?