Master Data Planning: Manage Your Assets so They Don't Manage You

Good afternoon. Thank you for tuning in. Welcome to today's webinar for a topic of strategic asset management slash master data planning. In today's webinar, we'll be talking about different terminologies and strategies that we can implement across the entire life cycle of your assets to increase their lives as well as improve the overall productivity of your maintenance and operations department across manufacturing industries. Before we get into the webinar details, I would like to give a quick introduction about myself, what I have done in my previous work life. I have mostly worked for food and beverage industries for last ten years prior joining Brightly team. I have mostly worked as a maintenance manager, engineering manager, as well as a senior operations manager for global manufacturing companies such as Coca Cola, Maple Leaf Foods, as well as Ventura Foods. I have dealt with the day to day maintenance, implemented different terminologies, methodologies, strategies to improve the overall productivity of those manufacturing industries. And I'm thrilled and excited to share all of my knowledge with all of you present here in our today's webinar. So without further ado, let's get into the webinar and further details. So what define a strategic asset management system? It's an end to end asset management system that goes around the entire life cycle of your assets that includes both your production as well as your facilities assets. Strategic asset management, it's a top down equipment framework which prioritize the physical asset investment. It provides you a holistic view of your current asset needs as well as helps you with your future forecasting information. Moreover, it provides you with the real time data to make informed decision rather than relying on a cash flow. So in our next slide, we will talk about this entire journey for the strategic asset management. So, I have envisioned this journey into three different phases. First phase which where we'll be talking about more basic and necessary information is called foundation phase. Second phase, where we'll be talking about how to enhance and how to improve the overall productivity of your operations and maintenance department. And in the third and final stage, we'll be talking about more intelligent and smart strategies that we can implement to make more data driven as well as strategic decisions. So let's start our first journey with the foundation phase and the first strategy that we'll be talking about is called reactive maintenance. So any manufacturing industry or any small scale industry who does not have enough resources or who has limited resources in terms of financials or labor, they always start with reactivating strategy. That means tackling and dealing with day to day maintenance and not having any proactive approach. There are several disadvantage of having reactive maintenance strategy. Hence, it can be a short term approach, but it can be a long term strategy. Some of the major disadvantages of having reactive maintenance approach is first, it shortens your equipment life expectancy, it increases your unplanned downtime, and it also increases your overall maintenance cost and your overall monthly maintenance budgets. There are mainly four types of reactive maintenance that that are very well known and very well used in maintenance and manufacturing. So let's go through some of them. So the first is emergency maintenance. Emergency maintenance is classified as a last minute maintenance that requires on a production lines. Example, your conveyor stopped after the production line. Your sensor is not working. Your compressor line is broken. Oftentimes, there might be a health and safety risk such as bearing houses fallen, gearboxes making loud noise. And in this type of situation, maintenance personalities call, maintenance employee go there, they evaluate the situation, and then repair it as it requires. So this classified as emergency maintenance. Second is corrective maintenance. As its name tells, we are correcting the particular piece of that equipment or the particular part of the machinery rather than fixing it permanently. Example, if there is a loud noise coming out of a bearing, maintenance personnel goes there, they evaluate the situation, and they know that this bearing can last for next two to three hours until the production is completed. And after, they can go back and do the permanent repair by replacing the entire bearing and the bearing housing. So what they do in the meantime, they put the grease, get rid of the noise, and get the line running. That classifies as a corrective maintenance. Next, breakdown maintenance. In this type of situation, the part or the equipment is completely broken and they require a major overhaul or complete rebuild. A very known example for a breakdown maintenance is a motor or a gearbox failure. In that situation maintenance personnel has to go and replace the entire motor and a gearbox to get the production back up and running. All of these maintenance types that we discussed, emergency, corrective, and breakdown maintenance, they all classified as an unplanned maintenance events. Whereas, the last which is run to failure maintenance is classified as a planned maintenance event. Some of the major examples for run to failure maintenance I can give is running light bulb or an led light till it fails. Running a piece of conveyors till it fails because it manufacturers have spare conveyors to replace it with in an event that particular piece of the conveyor fails. So, oftentimes manufacturer deliberately run those equipments and machinery because they have a backup plan ready in an event that particular equipment or machinery fails. So, this scenario is classified as a run to failure maintenance. Moving on to our next slide, asset register. Single source of information about all your existing production as well as facility assets. So what should an ideal asset register include? It should have all the necessary information such as OEM information, previous repair history, any spare part information including labor cost, and most importantly a current state of the condition for those assets. All of this information should be included and tied in into the asset register. Having an up to date asset register helps minimize equipment downtime on the production floor because the maintenance employees have all the necessary information on hand. Moving on to our last strategy in our foundation phase, it's called consolidated asset data. In another terms, maintenance history. So at this stage, you should have three things on your fingertips. First, previous repair history about all your existing assets, both production as well as facilities. Second, all of the cost associated with those repairs alongside with the spare part replacement cost to plan out for your future budgeting process as well as to track or forecast your upcoming month's maintenance budget. And third and lastly, the updated asset health portfolio, which helps you to start planning for your upcoming fiscal year capital planning process as well as it provides you a thorough understanding of your existing assets efficiency and what you would need to replace in a near future. So, here we end our first phase foundation. And now we'll continue our journey and we will start talking about our second phase which is intelligence and enhanced productivity. So, in this phase we'll be talking about different strategies and methodologies that we can implement to improve our day to day maintenance and operations within manufacture. A very first and very widely used terminology that we'll be talking about here is preventive maintenance. In short term PM compliance program. Having a robust PM compliance program to do a timely scheduled inspection and checks of your in use existing assets is a key to success. So, by doing the regular checks for all your in used assets both production as well as facilities there are a lot of advantages. A very few and very important advantages are it drastically reduce your unplanned downtime. It drastically reduce your overall maintenance cost because now we are not doing more reactive maintenance because we are taking it, inspecting those assets as a proactive approach and repair it as the need occurs. And last and very importantly, by running an efficient PM compliance program we can extend the entire asset life expectancy by reducing defects and deficiencies as it found during those pm inspections. So, running and implementing a strong pm compliance program is a key to improve the overall productivity of your manufacturing industries. Moving on to the next slide here, we will be talking about contract management. In other terms, third party vendors and contractors management. So just giving you a perspective about myself, when I was working as a maintenance and engineering manager in my previous work life, I had an average of three to five different vendors and contractors walking into the building to work on a different piece of an equipment or different piece of machineries such as boilers, compressors, plumbing tasks, rooftop units, hatchback units, flooring jobs, miscellaneous jobs. It was becoming very overwhelming for a small maintenance team to look after the day to day maintenance as well as capex projects plus this third party contractors. So, by having an automated system in place which can track all of these contractors activities on a day to day basis is a key to improve your overall productivity. By having an automated system in place, we can certainly track the quality work that is completed by this third party contractor as well as the time that they use plus any parts that they sign out from the inventory system. Having an automated system also helps in future regulatory compliance as well as auditory perspective. Some of the most regulated manufacturing industries such as pharmaceuticals, food and bio or even automotive has this robust audit that they have to go through on a yearly basis. So having this type of automated system in place can be a vital help to improve your third party contract management. Alright. Data driven decisions. In other terms, KPIs or key performance indicators. So having the successful manufacturing organization or to run or to lead a successful organization, we need data. Right? So how to improve those organizations? So by implementing a set of KPIs which can track your day to day performance such as your asset equipment downtime, your PM compliance rate, your correct to maintenance to your preventive maintenance ratio, your labor usage, both production labor as well as your maintenance labor as well as the overtime usage. These are some of the basic KPIs that any manufacturers can start tracking that and start taking corrective actions against those KPIs once we have significant data available. Such as, let's say, after two weeks of tracking PM, now we know, hey. We are only trending at seventy percent of the completion rate. Now we know what improvements or what corrective actions we can take in order to improve that rate from seventy to one hundred percent. Same goes with the asset equipment downtime. Right? So by tracking it for a month, now we know, hey. Our daily equipment downtime is sitting at four percent where whereas the world class is only three percent. What actions we can take to decrease that downtime from four percent to below three percent? So tracking KPIs is a key to improve your overall productivity as well as your asset life expectancy improvement as well. Moving on, energy management. Sustainability goals, net zero carbon emission usage, these are very widely known terms in today's scenario in manufacturing industries. So how does a manufacturer how can a manufacturer track all these different utilities, users across the organization on a daily, weekly, monthly basis? Right? So as you can see, this is one of our dashboard for our one of our Brightly's energy product, which we call energy manager, which tracks all of these different utilities constantly and provides you with the real time data to make more informed decisions. It can track any utilities such as water, natural gas, compressed air, carbon usage, electricity usage, ammonia usage, and gives you a real time data. So by having the real time data available, you can compare that with your budgeted cost to make sure that you are trending under the allocated budgeted limit. As well, you can use and utilize this data to plan for your next fiscal year budgeting process as well. So having an automated system, which can track all of your different utilities is a key to success and a key to improvement of your manufacturing industries. Okay. So we did talk about two phases. We did talk about foundation phase and different strategies that we can implement in foundation. Then we talked about the phase two where we talked about different strategies and methodologies that we can implement to enhance and improve our day to day maintenance and operations. Now we'll be talking about different strategies and methodologies that we can implement to make more data driven and strategic decision from the business standpoint on how to improve the overall production volume and business revenue. So the first terminology that we'll be discussing here, it's called predictive maintenance. We did talk about reactive maintenance. We did talk about preventive maintenance. Now, let's understand what is predictive maintenance and how it can help manufacturers. So, by leveraging predictive models and predictive measures in place, we can drastically reduce asset failures, hence improve the overall productivity. You can predict when the maintenance is needed on your critical assets as well as of on your production assets. Hence, you can lead to a cost savings over routine maintenance and it can help you to improve your overall productivity because now a, you are taking proactive approach to fix that issue rather than doing a reactive approach. By implementing predictive maintenance and predictive, strategies in place, we can improve the overall lifespan of your assets as well as drastically reduced unplanned downtime with fewer breakdowns of your critical asset. So what I meant by critical asset that includes all your utilities like your boilers, your compressors, your electrical switch gears, and some of your critical production equipment, right, which which are the main leading factor to run most of your production nights. So now you can stay informed with the real time data by implementing predictive maintenance strategy in place. Moving on to our next slide, where we'll be talking about condition based capital planning. All of you or most of you have heard this terminology called capital planning. But what is condition based capital planning and how do we leverage this model? So, as you can see it's a phased approach which combine the information coming out from predictive measure plus historical data and we can leverage this information in order to start building our capital planning process for the upcoming years. What I mean by predictive measure? So, as I just talked in my previous slide about predictive maintenance and the real time data. So, by conducting that real time data for the critical assets most importantly all of the critical assets and utilities example boilers. So, now having that real time data which tells you that out of your three boilers one of your boiler is running at sixty percent capacity, one of the boilers running at eighty percent capacity and one of the boilers running at fifty percent capacity. So now you know that hey, one year from now I would need one boiler, Two years from now, I would need another brand new boiler. And four years from now, I would need a third brand new boilers. So by leveraging that real time data, we can start planning for the capital planning for those boiler replacement in next one to three to five years lifespan. So that was a practical scenario for the predictive measures. How do we leverage the historical data and the historical information to plan out for the capital planning? So let me give you an example. You have a cardboard compactor or a cardboard machine that that folds and create a cardboard to pack your produced goods. That cardboard machine is fifteen years old, has done approximately ten to fifteen major overhaul and repair in past five years, has all the obsolete parts which is very hard to get in today's scenario. So, now we have all this historical data in place, all the previous repair history about all this obsolete parts information. We can leverage that information and we can ask for a brand new cardboard machine in next year fiscal capital planning process to replace it with the most upgraded cardboard machine which has the most advanced features alongside with the servo drives as well as the PLC. So this was the practical example of how you can leverage the historical data as well as the predictive measures to plan for your capital planning process. So that's what it calls a condition based capital planning process where you rely on a data to plan for your fiscal year next future capital plan. Okay, so we are on the last slide of our today's webinar. So strategic asset management, how do you know that when you have reached to that phase? So there are three different criteria where which which which identify, which classifies that you're running your operations and maintenance efficiently both operationally as well as financially. First, you're running your PM program efficiently, seamlessly with attaining your target compliance rate which is more than ninety percent. Second, you are keeping informed with the real time data by implementing predictive measures in place. So, you can take proactive approach for all of your critical assets hence minimizing unplanned downtime on those critical assets which results in improving overall productivity. Last and most importantly, from strategic decision and from organizational standpoint, If you are tasked and I will give you my own example in my previous work life, I was tasked that at that point we were doing about one hundred and twenty million pounds for the production volume and I was tasked to improve and to increase that production volume by five percent in five years lifespan. So in a scenario like this, where you have to improve your overall business revenue and growth, how do you make those strategic decision? You leverage that real time data and you leverage that historical data and you make informed decision. Right? Such as what is your existing square footage of your company? Plus, what is the current asset health portfolio for your existing assets? How much more production they can provide? And based on that data, we can start planning out for our future production expansion. So, this is in a nutshell called strategic asset management. I hope all of you understand all of these different strategies and terminologies that I have discussed. Please try to understand where you are in your current journey to optimize your asset life expectancy and start taking necessary approach against them. Again, if you would like to connect with me, please feel free to reach out to me via LinkedIn. Happy to help. If you have any questions, concerns, or would like to understand it in more details, please feel free to reach out. On this note, thank you for attending today's webinar. I hope you enjoy the rest of your day and rest of your evening and hope to see you soon in our upcoming webinar. Thank you. Bye for now.