Implementing and Managing a Maintenance Plan

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Implementing and Managing a Maintenance Plan

• The Maintenance Plan
• Ken Henman

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The Maintenance Plan

• What is a Maintenance Plan
• Why have Maintenance Plan
• How to develop a Maintenance Plan
• Implementing and managing a Maintenance Plan

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What is a Maintenance Plan

• Part of the total effective management of railcar
  assets
• A structure under which railcar maintenance and
  repair can be proactively managed
• Allows for aggressive control of maintenance
  costs and procedures

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Why Have a Maintenance Plan

• Meet regulatory requirements
• Improve and sustain reliability
• Risk management and loss control
• Avoid opportunity loss
• Sustain asset function
• Sustain asset value
• Maintenance of assets viewed as contributor to
  business success

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How to Develop a Maintenance Plan

• Understand objectives
• Understand responsibilities
• Evaluate
• Organize
• Develop
• Implement
• Measure effectiveness
• Re-evaluate
• Adjust

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Implementing and Managing a Maintenance Plan

• Establish a scope of work- SOW
• Selection of repair facilities
• Logistics and scheduling
• Commence maintenance activities
• Evaluate- leading and lagging KPIs
• Adjust

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Establish a Scope Of Work

• Objectives - State your intent
• Goals
• Types of maintenance
• Overall expectations
• List of specific cars involved
• Individual, group or series
• Repair scope
• Focus of repairs according to objectives
• Applicable attachments (i.e. prints, schematics
  etc.)
• Overall car condition and other repairs

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Establish a Scope Of Work

• Responsibilities
• Maintenance responsible party
• Who approves and pays the bills
• Expectations of shop
• Quality
• Reporting
• Estimating
• Turnaround
• Contact information
• Maintenance responsible party and shop

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Distribution of the Scope of Work

• Treat as a controlled document
• Titled and dated per latest revision
• Confirmation of receipt and understanding by shop

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Selection of Repair Facility

• Capacity
• Size suitable for level of performance and turn
  around expected
• Capabilities
• Meets quality and quantity expectations
• Location
• Within boundaries of serving railroad without off
  line transportation charges
• Relationship
• Familiarity of service expectations
• Agreements covering rates and material

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Logistics and Scheduling Maintenance Activities

• Car service demands
• Loading schedule
• Availability of railcars
• Relationship of car location to shop(s)
• Criticality of condition
• Shop availability
• Materials

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Maintenance Activities

• Equipment inspection results
• Inspection summary or estimate as needed
• Distributed to maintenance responsible party for
  approval
• According to SOW criteria
• Adherence to stated objectives
• Report of overall car condition
• Estimate
• Per SOW
• Within expectations

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Maintenance Activities

• Approval of inspection summaries- estimates
• In process inspections
• Status reports
• Completed car inspections
• Track all warranties and claims
• Equipment return to service

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The Scope of Work as a Living Document

• Inspection and repair results meet expectations
• Flexible according to need
• Revised as needed
• Revisions distributed in controlled manner

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Maintenance Plan Evaluation-KPIs

• Leading KPI - Indicators that measure performance
  before problems arise
• EHMS exposure
• Last major repair event
• Lagging KPI - Historical information measuring
  performance results
• According to budget
• Reliability effectiveness measure
• Maintenance costs to deliveries
• Reactive to proactive maintenance
• Unplanned to planned maintenance

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Evaluate-Leading KPIs

• Periodic maintenance
• Time or mileage based maintenance
• Component life cycle based maintenance
• According to known component life expectations
• Equipment condition base
• According to baseline and periodic inspections

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Evaluate-Leading KPIs

• Estimated cost of repairs according to the SOW
• Relationship to budget and expectations meets
  objectives
• EHMS exposure
• Review current car information for open Alerts
• Quality assurance
• Avoidance of rework

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Evaluate-Lagging KPIs

• Quality control
• Avoid after repair rework
• Tracking actual maintenance cost
• Estimate to final invoice audit
• Final invoice to SOW
• To budget
• Gather information
• Equipment inspection and performance information
• Results measured against plan

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Evaluate-Lagging KPIs

• Repair facility performance
• Quality
• Quantity
• Out of service Turnaround time
• Time the car is bad order or awaiting disposition
• Time the car takes moving to shop
• Time the car is in the shop for repair
• Arrival to inspection and estimate
• Approval to completion
• Time the car takes to move back into service
• Results measured against plan
• All this out of service time decreases
  utilization

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Key Performance Indicators

• Association of leading and lagging KPI identifies
  trends
• Time between component failures or repairs
• Per car per month
• Life cycle cost to asset value
• EHMS exposure
• Actual cost to budget
• Car status monitoring
• Shopping performance
• Continuous improvement

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Plan Effectiveness - KPI Reporting

• Gather data and measure results
• Provide results in detailed, summarized format
• Periodic reviews
• Internal
• Contractors
• Repair facility
• Results used to adjust plan and SOW
• Insure quality of work and cost control
• Re-focus on specific problem cars or components

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Fleet Per Car Per Month Cost
CAR SERIES
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Major Components, Contractor OnlyABCX 1000-1999
Cost per Car per Month Cost per Car per Month Cost per Car per Month
2006 2007
AAR 26.86 36.67
Contractor 41.30 74.48
Combined 68.16 111.15
78,531
53,969
25,003
1,786
3,645
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Major Components, Contractor OnlyABCX 2000-2999
Cost per Car per Month Cost per Car per Month Cost per Car per Month
2006 2007
AAR 7.17 22.32
Contractor 53.50 29.80
Combined 60.67 52.12
11,093
3,933
1,803
285
536
761
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Budget Review
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Budget Review YTD
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Yearly AAR Billing PercentageReactive to
Proactive
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Wheel Bearing Defects
870
781
792
792
552
541
485
312
315
271
180
183
183
184
157
155
149
143
119
82
Total includes wheels changed for other reasons
All Wheels Replaced by AAR Contract Shop
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Average Wheel Set Mileage, by Group
CAR SERIES
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EHMS Exposure
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Major Shopping Event, Last Air Brake Test
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Shop Process Cycle Times
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Evaluate-

• Continuing evaluation of SOW according to
  maintenance goals
• Did the plan accomplish the objectives?
• Adjusted - revise
• Determining revisions to Scope of Work
• Select revisions to meet objectives
• Process of continuing improvement

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Maintenance Types
Maintenance Type Description Plan Budget Results
Corrective-Reactive Fix it when it breaks-Breakdown Unscheduled Unexpected, uncontrollable costs Costs of Doing Nothing
Periodic Time or mileage based Scheduled Planned, controllable costs Tends to over maintain-shorten component life
Preventative Defensive maintenance Anticipated Planned, controllable costs Dependent on condition evaluation
Predictive Condition based Predicted Planned, controllable costs Dependent on information evaluation
Proactive Combination of all According to criticality Flexible plan, controllable costs Best mix Best results!
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Journey From Repair-Focused to Reliability-Focused Culture Journey From Repair-Focused to Reliability-Focused Culture Journey From Repair-Focused to Reliability-Focused Culture Journey From Repair-Focused to Reliability-Focused Culture Journey From Repair-Focused to Reliability-Focused Culture Journey From Repair-Focused to Reliability-Focused Culture
          Contributor To Business Success
  Don't Just Fix It- Improve it!  
  Fix It Before It Breaks Alignment (Shared Vision)
  Fix It After It Breaks Performance Improvement Integration Business Processes
  Predict Plan Asset Function Proven Plan Performance
    Schedule Coordinate Asset Value Business Reliability
  Cost Center Cost Focus Reliability Customer/Supplier Relationship
Rewards Staged Decay Short Term Savings Uncontrolled Cost Limit Surprises Competitive Advantage Business Success
Motivator Meet Budget Breakdowns Avoid Loss Utilization Growth
Behavior Decaying Responding Initiate Discipline Disciplined Alliance

Strategic
Proactive

Planned
Reactive
Don't Fix It
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Maintenance Plan Cycle
PLAN
Maintenance- Continuous Improvement Cycle
SCHEDULE
ANALYZE
EXECUTE
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Summary

• Maintenance and value to assets
• Risks of not maintaining
• Maintenance philosophies
• Technology
• Maintenance plan
• Measuring effectiveness