Maintenance Management Process MMP.pdf

LARGE INDUSTRIES MAINTENANCE MANAGEMENT PROCESS (MMP)

Document No.: Revision: Effective Date: Page: Serial No.:

PPN-MNT-0002-P 0 Page 1 of 87

DISCLAIMER Air Liquide America, L.P. and its affiliates ("Air Liquide") have drafted this document exclusively for their own use. This document is considered confidential and proprietary in nature. Without written permission of Air Liquide Management it shall not be distributed to or used by anyone other than Air Liquide personnel. Users of this document must ensure that they have the latest revision. Non-current versions of the document must be destroyed and must not be used. Air Liquide believes that the information contained in this document is true and correct and that the document suitably addresses the matter to which it relates; however, Air Liquide does not hold itself out to third parties as recommending the use of this document or the information contained herein, or reliance thereon in any way. With regard to such third parties and the information contained in this document or the use or application of the information contained in this document, AIR LIQUIDE EXPRESSLY DISCLAIMS ALL WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE WARRANTY OF MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. Air Liquide also disclaims all liability and responsibility for loss, damage or injury, however occurring, resulting from the use of this document or the information therein by any third party.

1.0

SCOPE 1.1

2.0

POLICY 2.1

3.0

The Large Industries Director of Maintenance and Reliability shall be responsible for implementing this procedure.

ACTIVITY 6.1

7.0

MMP – Maintenance Management Process

RESPONSIBILITY 5.1

6.0

There are no HSE considerations applicable to this document.

TERMINOLOGY 4.1

5.0

This process shall apply to all maintenance activity in Large Industries business unit.

HSE CONSIDERATIONS 3.1

4.0

This document describes the maintenance processes for Large Industries Maintenance.

All maintenance activity is described in Attachment 1.

ATTACHMENTS 7.1

Attachment 1 – Maintenance Management Processes for Large Industries Business Unit.

LARGE INDUSTRIES MAINTENANCE MANAGEMENT PROCESS (MMP)

Document No.: Revision: Effective Date: Page: Serial No.:

PPN-MNT-0002-P 0

The

Air Liquide America, L.P.

Maintenance Management Process For

Large Industries Business Unit

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Table of Contents Introduction How to Use This Manual………………………………………………............ 5 Unit 1 – Maintenance at Air Liquide America 1 Fundamentals of Maintenance Management ................................. 8 2 Large Industries Maintenance Strategy........................................ 10 3 MMP: Maintenance Management Process................................... 15 4 Maximo Enterprise Asset Management ....................................... 21 5 The ALA / Maximo Implementation ........................................... 24 Unit 2 – Maintenance Management Process 1 Identification and Prioritization ................................................... 29 2 Planning and Estimating............................................................... 38 3 Approving..................................................................................... 51 4 Procurement.................................................................................. 56 5 Scheduling .................................................................................... 62 6 Executing and Reporting .............................................................. 74 7 Continuous Improvement............................................................. 78 Appendix I – Flowcharts A Requisitions .................................................................................. 81 B Requisition Approval ................................................................... 82 C Pipeline Zones .............................................................................. 83 D Pipeline WO Approval ................................................................. 84 E On-Site Zones............................................................................... 85 F On-Site WO Approval.................................................................. 86

INTRODUCTION

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INTRODUCTION

How to Use This Manual Getting Started

This manual is designed both for use in the classroom and as a handbook for reference later. If you are a student in the classroom, and this manual was given to you to use, it is yours to keep. There is a place in the back of the book for additional notes. Also, writing in the margins is not only permitted, it is encouraged. This book is designed for use with the companion manual Maximo Enterprise Asset Management, which explains transaction-by-transaction, the use of Maximo 4i in this process. Teaching Maximo is not the purpose of this manual, but for clarity, some Maximo functionality is discussed. This book explains the reasoning behind the decision processes, which drive the functions in Maximo. Together the two manuals explain the process and the specific techniques for efficiently managing and executing the maintenance process at Air Liquide America, L.P.

Information Mapping

The formatting of this manual is done using a procedure called Information Mapping. This makes it much easier to find specific information quickly. Similar blocks are grouped in sections, similar sections within chapters, related chapters within units, etc. If you would like more information about this formatting procedure, please visit their website: http://www.infomap.com/solutions/index.htm

Flowcharts

Study the flowcharts. Much more can be conveyed about processes and procedures in the flowcharts than can efficiently be described in words. The purpose of this manual is to explain MMP, the Maintenance Management Process, and how it is used at Air Liquide. This purpose will be better served if the reader studies and understands the flowcharts before proceeding, since multiple references are made to the flows throughout the manual.

Appendix 1-A 1-B 1-C 1-D 1-E 1-F

Flowcharts Topic Requisition Requisition Approval Pipeline Zone Work Orders Pipeline Zone WO Approval On-Site Zone Work Orders On-Site Zone WO Approval

See Page 79 80 81 82 83 84 Continued on next page

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INTRODUCTION

How to Use This Manual, Continued Process vs. Procedure

Hopefully, by the time you finish training, and have studied this manual, you will understand that MMP is merely a maintenance philosophy, describing a specific process, carried out by employees in well-defined roles, for identifying, documenting, planning, approving, and executing work…efficiently. Maximo is a software program, configured to MMP compatibility, which provides the structured environment for housing documented tasks and procedures, storing standardized parts and supplies, garnering appropriate approvals, and scheduling work execution. It is a standardization tool. You will notice that the manual constantly reminds the reader of the relationship between MMP, the philosophy, the big picture, the overall Process…and Maximo, the tool, the task, the transaction, the Procedure within the process.

Statuses

The following are statuses or status synonyms currently used in Maximo: Status APPR CANCEL CLOSE COMP CRTD HOLD INPROG PLAN SCHD TECO WAPPR WMATL WPCOND WSCH

Description Approved Work Order is cancelled Work Order is closed (financially) Work Order is complete Created Work Order has been interrupted Work is in progress WO approved to plan, WO in planning now Work is Scheduled Work is technically complete Waiting approval Waiting for Material Waiting for Plant Conditions Waiting to Schedule Continued on next page

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INTRODUCTION

How to Use This Manual, Continued Abbreviations

The following are abbreviations used in this manual: Abbreviation ALA CMMS CSM EAM ERV FMEA GL I&E IC KPI LI L.P. LOX MC MMP OS Plt.Mgr. PdM PL PM PR PO RACI RC RCFA RCM REQ SOP TAR WO

Description Air Liquide America Computerized Maintenance Management System Corporate Supply Management Enterprise Asset Management Estimated Replacement Value Failure Mode and Effects Analysis General Ledger Instrument and Electrical Industrial Customers (Business Unit) Key Performance Indicators Large Industries (Business Unit) Limited Partnership Liquide Oxygen Maintenance Coordinator Maintenance Management Process On-Site (zone or plant manager) Plant Manager Predictive Maintenance Pipeline (zone or plant manager) Preventive Maintenance Purchase Requisition Purchase Order Responsible, Accountable, Consulted, Informed Reliability Center Root Cause Failure Analysis Reliability Centered Maintenance Requisition Standard Operating Procedure Turnaround Work Order

`

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Unit 1. Maintenance at Air Liquide America Chapter 1. Fundamentals of Maintenance Management Standards and Best Practices

Maintenance is the application of time, tools, and talent to insure that equipment functions at the desired capacity. Efficient and effective management of this maintenance process insures that we obtain the optimum reliability level at the optimum cost over time. In any type of industry, there are standard procedures for maintaining equipment assets that are generally accepted. Equipment assets of a specific type require specific maintenance procedures, applied in the proper manner and at the correct frequency, to achieve the results desired. Often the manufacturer recommends certain procedures. Others are often referred to as industry best practices or industry standards. Many industry best practices and standards evolved as a result of many years of applied maintenance and measured results. Some standards help to insure more cost-effective repair, while others promote a safer environment during the performance of maintenance procedures. Often, an accepted best practice is nothing more than common sense. The adherence to industry best practices and standards does not guarantee a reduction in time or cost needed for the repair, but it does increase the likelihood that the repair will be accomplished efficiently, safely and expediently.

Efficiency and Reliability

Just as the application of uniform standards of maintenance and performance measurement can improve the reliability, safety and cost-effectiveness of specific maintenance repairs, rational and appropriate standards of maintenance management can and should be applied at all levels of the maintenance organization. This not only insures that the company’s equipment asset-base functions reliably, but that this reliability is consistent and measurable. What constitutes rational and appropriate maintenance management will differ from company to company. Though unique and specific solutions do evolve over time, many organizations have similar maintenance needs, share many of the same processes and procedures, and strive to achieve the same outcomes. For this reason, exceptional maintenance organizations within these companies may be very nearly identical in certain aspects, varying only slightly in others. Continued on next page

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UNIT 1, CH 1

Unit 1 Chapter 1. Fundamentals of Maintenance Management, Continued Exceptional Maintenance

An efficiently managed maintenance organization has maintenance dollars budgeted well in advance. Major projects are well planned, efficiently executed, and cost projections are more accurate because a larger percentage of the work is repetitive and proactive in nature. There are fewer surprises and complete breakdowns are rare, because equipment is more reliable. Maintenance needs are identified immediately and planned efficiently. Scheduling decisions are made intelligently and generally work is started and completed on time to minimize down time and improve efficiency. Within an exceptional maintenance organization, each individual has welldefined responsibilities with sufficient authority to be successful. There are planners, schedulers, coordinators, technicians, managers, etc. Identifying roles and defining them well, minimizes redundancy and insures continuity, even though people leave the organization and new people fill the vacancies. Training is specialized and targeted according to individual responsibility and all employees have a general understanding of the big picture, where they fit and how their area of specialty impacts the total maintenance process.

Optimizing the Maintenance Management Process

At the heart of any maintenance management process is the understanding that achieving optimal maintenance is an ongoing effort, requiring the total commitment and cooperation of the entire organization. It includes the delegation of authority, logical division of responsibility, comprehensive and continuous training, constant communication and above all, management’s commitment of support and expectation of success. It is virtually impossible to implement an “out-of-the-box” maintenance management philosophy with a “one-size-fits-all” mindset in a company as diverse and unique as Air Liquide America, L.P. Here, a good maintenance philosophy is a great start, but it will require on-going optimization. The process as already started. In the next section, you will begin to see how Air Liquide’s Large Industries Business Unit is approaching the management of the maintenance process.

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Unit 1 Chapter 2. Large Industries Maintenance Strategy Introduction

The goal of reliability-centered maintenance is optimum production reliability. And production is reliable when the very best equipment maintenance practices are consistently and skillfully applied. This means the right parts, the right tools, and the right human talent available…applied the best way possible…as often as possible. To that end, the philosophy behind creating well-staffed, centrally located Reliability Centers, is to locate the appropriate materials, tools, and craftsmen within striking distance of work, properly prioritized to meet the needs of the business. Though the philosophy is the same for Pipeline and On-Site plants, the application strategy changes slightly as distance from the RC increases. Basically, the further a plant is from the RC (i.e. – Northern, Southern and Western Zones), the more maintenance work a Plant Manager has to execute locally. The philosophy hasn’t changed. We will consistently apply the best resources and talent available, wherever they are needed. Determining when they are needed, is the subject of this section. And we will present some general guidelines for the On-Site plants to follow in making that determination.

OS RC vs. PL RC Responsibilities

Below are some of the differences in types of work typically managed by On-Site RCs, and that managed by the more heavily staffed Pipeline RCs. On-Site RCs (Staffed for Major Maintenance) Northern, Southern & Western Major Maintenance Work > $5K 80% of budget Major PMs, PRs, POs Planning/Approvals Plan, Schedule, and Execute TARs, OHs

Pipeline RCs (Staffed for Major Maintenance & Daily Maintenance) Mississippi River, Hydrogen & Gulf Coast Major Maintenance Daily Maintenance Budget Management Planning & Scheduling PMs PRs & POs

Continued on next page

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UNIT 1, CH 2

Unit 1 Chapter 2. Large Industries Maintenance Strategy, Continued PL RC vs. OS RC Strategy

Due to their remote locations, On-Site plants must be more self-sustaining in nature and require the Plant Manager to play a larger role in the maintenance process. The resources from which the On-Site plant has to draw are minimal compared to Pipeline plants with RCs close by, so they are required to perform minor maintenance. Because of the larger role of the On-Site Plant Manager in the process, the On-Site Zone RCs (i.e. – Atlanta, Chicago, San Francisco) are less heavily staffed from the start.

PL RC vs. OS RC Staffing

Pipeline Zone RCs are well equipped and well staffed with technicians and other skilled human resources. They have a greater concentration of assets, so their maintenance budgets are considerably higher. For these reasons, Air Liquide has decided that the RC should manage the daily maintenance for the associated plants, so that the bulk of the resources are consistently applied where the bulk of the costs are consistently generated. On-Site Zones Northern, Southern & Western PdM Specialists Planners/Scheduler Reliability Engineers Maintenance Engineers Maintenance Coordinators Equipment Specialists Control System Specialists I & E Technicians

OS RC Responsibilities (80/20 Rule)

Pipeline Zones Mississippi River, Hydrogen & Gulf Coast PdM Specialists Planners/Scheduler Reliability Engineers Maintenance Engineers Maintenance Coordinators Equipment Specialists Control System Specialists - PLUS HV Electricians I&E Technicians Analyzer Technicians Harmony Mech Techs

The best way to describe the relationship between an On-Site RC and one of its plants, is to apply the 80/20 rule. On-Site RCs target management of the work that generates roughly 80% of the costs, leaving the plant to manage the remaining 20%. Note: Overlap does occur, creating a gray area where the Plant and RC jointly decide how best to manage the work, often based on factors other than cost (i.e. - job requirements, risk, complexity, etc.). Continued on next page

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UNIT 1, CH 2

Unit 1 Chapter 2. Large Industries Maintenance Strategy, Continued PL RC Responsibilities

Pipeline RCs target management of 100% of the costs and work of a Pipeline plant because they are geographically closer, often within walking distance. This gives Pipeline plants a much larger talent pool from which to draw allowing them the flexibility to make necessary repairs on a daily basis. Note: For a more detailed depiction of the work order flows for Pipeline and On-Sites please see the flowcharts Appendix I at back of this manual.

PL RC Concept

In 2001 the “One Stop Shop” RC concept was created. (Pictured below) The idea was/is for Pipeline plants to go through the RC for their daily maintenance needs. From creating work orders, to prioritizing, approving, planning and scheduling work, including PMs, TARs, PRs, POs and work execution.

National/ Regional Vendors

PLANT 1

National/ Regional Contractors

PLANT 2

RC ALA National Resources

ALA Warehouse

PLANT 3

PLANT 4

Spare Parts

Materials

Equipment

Continued on next page

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UNIT 1, CH 2

Unit 1 Chapter 2. Large Industries Maintenance Strategy, Continued On-Site Plant Manager

Most of the discussion to this point has been concerning the Reliability Centers, how they are staffed, their responsibilities to the plants, what they do, etc. What remains to be clarified are the guidelines and instructions for the On-Site Plant Managers. How will they determine when to exercise personal initiative, provide local oversight, and apply local talent?

Risk Assessment

Risk must also be evaluated, when determining whether or not to handle work locally. What is lost if a simple, quick fix, results in a total breakdown…and the manpower is not available to fix it? How likely is this? All things considered, is this particular risk a reasonable one? In general, the higher the risks, the more likely it is that the RC should manage the work. Examples of Low, Medium and High Risk Jobs • Instrument calibration Low • Changing Panel Lights • Changing Oil or Oil Filters • Repacking Cooling Tower Water Pumps Medium • Exchanger Cleaning • Any Compression Equipment Overhaul High • All Turnarounds • Motor Repairs & Replacements

Complexity

Does this work require a complex set of different skills, suppliers and equipment? Does the plant have the local talent to attempt this repair? Does this repair have the potential to overwhelm the local resources? What is the worst-case scenario, in this regard? Are we prepared for it? In general, the more complex the repair, the more important it is that the RC manages it. Examples of Low, Medium and High Levels of Complexity • Painting Low • Insulating • Transmitter Replacements Medium • Analyzer Replacements • Repair LOX Pumps High • Mole Sieve Valve Repairs & Replacement Continued on next page

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UNIT 1, CH 2

Unit 1 Chapter 2. Large Industries Maintenance Strategy, Continued On-Site Plant Mgr. Rule-of-Thumb

Now…understanding the MMP philosophy of placing the right parts, tools and people, on the most critical, most complex, riskiest jobs…and knowing our strategy allows exceptions when certain circumstances exist…How do you as the On-Site Plant Manager faced with an equipment malfunction or breakdown, determine how to proceed? What are your first steps?

Call the RC? Y/N

The OS Plant Manager might use the following as a guideline when deciding whether to handle a specific job locally. On-Site Plant Routine Tasks Minor < $5K Simple Tools Plant-based PMs Requires only a Field Direct PO*

RC Irregular Repairs Major >$5K Complex / Contractor Required National PMs Requires a CSM PO (>$10,000)*

* Field Direct and CSM Purchase Orders are discussed on pages 40 and 41. Litmus Test

Think of each of the following entries as a very general litmus test. On-Site Plants should ask three questions: Do my plant personnel have the time to do this work? Do they have the tools? Do they have the talent? If the answer to any one is “No,” call the RC to discuss.

The Grey Area

Understand, these are general guidelines issued to facilitate the decision process. Obviously risk and complexity are subjective…and there will be jobs executed by the RC, which fall below the $5,000 mark and some more expensive jobs executed by the plants. When the guidelines are not sufficient, or unclear circumstances merit involvement of Zone Production Managers and RC Managers, or an even higher authority…requesting that involvement is the appropriate course of action. Resolution is the goal.

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Unit 1 Chapter 3. MMP: The Maintenance Management Process Introduction

A couple of years ago, the decision was made to begin redesigning how we do maintenance in the Large Industries Business Unit. The idea was to incorporate industry best practices into our everyday processes and standardize our procedures. Better, safer practices did exist and we needed to be using them. The initiative was called the Maintenance Management Process, MMP. It incorporates several simple and logical concepts, which will be discussed in this chapter. Proper maintenance done properly not only promotes safety, quality, and reliability, the inherent efficiency is critical to the bottom line, reducing maintenance costs and building competitive advantage right into the production process. MMP now provides a solid foundation, upon which we will continue to build and improve consistently. MMP is designed to provide the environment where this consistency is not compromised by positive change and growth. The best working environment facilitates growth, by encouraging personal initiative, and embracing positive change.

Maximo 4i

It was realized early on that one of the core ingredients to having a successful Maintenance Management Process is to implement an Enterprise Asset Management System (EAM), formerly known as CMMS, to facilitate and enhance the MMP process. An extensive study was undertaken at Air Liquide to evaluate the current EAM (Synergen) and determine if it would meet the needs of Air Liquide. The results of the study showed that Synergen would not meet our needs in its current state. Another study was performed to determine if we should invest more money in Synergen to upgrade and achieve the desired results or if we should implement a new system. As a result of this study, Air Liquide chose to implement Maximo in place of Synergen because Maximo is an industry leader, has standard interfaces to Oracle financials, has thousands of customers worldwide, and would enable us to achieve our MMP vision. Continued on next page

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UNIT 1, CH 3

Unit 1 Chapter 3. MMP: The Maintenance Management Process, Continued Solution Workshops

The Maximo project began in 2001 with “Solution Workshops”. The Solution Workshops were an opportunity for future users to give their input on the new system. Many field personnel from both Industrial Customers and Large Industries attended these workshops, which lasted over 4 weeks. The workshops were designed to bring in a diverse group of employees with a wide range of experience in order to capture the needs of everyone. The workshop gave everyone the first peek at Maximo and an opportunity to give input into the design of the Large Industries Maintenance Management Process (MMP). Once the workshops were completed, all of the issues and suggestions were recorded and the Maximo and MMP Teams began their work. The teams have been working ever since to solve these issues, identify new issues, develop the system functionality, and meet the users needs. This was not always an easy task considering that both the Maximo and MMP team needed to meet the needs of the Pipeline Plants and On-Site Plants, as well as the Industrial Customer’s fill plants, fleet, and field services groups. Each of the above has needs that differ from the others and the system has been designed to meet all of these needs.

Question!

How will this affect me? Questions Will this mean extra work?

Answers Maybe - A good maintenance process should make life more efficient and effective. If it doesn’t, there is something wrong. You will find that a few things require a little extra attention, but you will also find that the payoff is well worth the extra effort. Will my job Yes – Almost without a doubt. If you are part of maintenance, change? your job will change, for the better. Hopefully, you will find that things run more smoothly, efficiently and safely. What’s in You get clear lines of communication, a full understanding of this for me? your responsibilities, sufficient authority to do your job successfully, full support, and an expectation of success. Where do I Read on. The next Unit explains in detail the different roles and fit into this? responsibilities, which will be key to successful maintenance in the future. Will there Absolutely. Thanks for reminding us. be a test? Continued on next page

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UNIT 1, CH 3

Unit 1 Chapter 3. MMP: The Maintenance Management Process, Continued MMP: Roles & Responsibilities

Everyone is a key player. In general, the following roles and areas of primary responsibility either already existed or were established to facilitate the MMP process: Role Plant Tech Coordinator

Planner

Maintenance Engineer Reliability Engineer Specialist RC Manager

Scheduler

Zone Prod Manager Business Unit Leader Plant Manager (PL)

Plant Manager (OS)

Maintenance Tech

Primary Responsibilities Identifies work and creates work orders. Prepares Scheduled equipment for readiness. Responsible for assigning labor and executing the work schedule, provides feedback for work history and financial history. Plans the work orders, orders materials, notifies scheduler when job is ready to schedule. Provides technical oversight and cost management. Provides technical review and analysis Provides specific technical expertise on select jobs Responsible for RC resources and accountable for the Maintenance Management Process. Creates schedule based on priority, availability of resources and geographic feasibility. Provides approval and work priority guidance. Provides approval and work priority guidance. Identifies work and creates work orders. Jointly schedules work and provides approval and work priority guidance. Identifies work, creates work orders, approves work (less than $5,000), executes work, completes work orders. Prepares for readiness and executes work. Continued on next page

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UNIT 1, CH 3

Unit 1 Chapter 3. MMP: The Maintenance Management Process, Continued Basic Work Types

There are 2 types of basic maintenance work, scheduled daily, executed according to priority, identified in the Priority field. They are listed below and discussed in the next section. Work Type Preventive Corrective

Turnaround Work

Pri 99 3 2 1

Description Time-based (pre-approved) Emergency Urgent Normal

Planning Pre-planned No (initial) planning Immediate planning Routine planning

Additionally, there is Turnaround work. A turnaround is typically a project of relatively short duration, encompassing work of pre-determined scope, addressed in a pre-determined time frame. The associated work orders are identified with a Y (yes) in the Turnaround field. Turnaround work orders are not executed according to priority, and in fact, the priority field is understood to mean relative importance (when compared with other TAR work orders), rather then execution priority. Work Type Turnaround

Pri* Description 1-3 * Major Maintenance Projects

Planning Extensive planning

* Priority = Relative Importance on Turnaround Work Orders

Health, Safety, Environmental, Quality

It is relatively common to find special work types identified in the priority field. It might mean “S” for Safety work, or “E” for work that has Environmental impact. Placing this in the Priority field is a mistake, because the ability to prioritize is then lost. How does one differentiate between an emergency safety-related work order and a routine safety-related work order? Or how would one identify a work order, which addresses Safety and Quality concerns? To avoid this pitfall, Air Liquide identifies Health, Safety, Environmental and Quality related work orders by marking any box (or combination of boxes). Any work order can have (or not have) Safety ramifications, Environmental impact, can influence product Quality, and/or have Health implications. Continued on next page

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UNIT 1, CH 3

Unit 1 Chapter 3. MMP: The Maintenance Management Process, Continued MMP: Functional Steps

The Maintenance Management Process is comprised of several functional steps, or procedures, which together define and coordinate the work process efficiently, from identifying the need through completing the work, with final emphasis on feedback and continuous improvement. The briefly described steps below are expanded upon in Unit 1. Functional Step Description Identification & Maintenance need is recorded electronically and Prioritization described. The necessary information (location, requester, urgency) is recorded and the work order is sent to planning. Planning & What is needed? How is this work best completed? Estimating What will this cost? The Planner takes a rational look at what is needed especially in labor and material resources. This is especially important for scheduling purposes. Financial Planned work is sent to the appropriately authorized Approval entity for financial approval or rejection. A plan of action has already been determined and the estimated is known. All things considered, is this something we want to do? Procurement Once the plan is approved, the planned purchases and labor commitments can be made. Work cannot be done until the parts arrive. The urgency in expediting the parts depends on the urgency (priority) of the work order. Scheduling Scheduling, the actual placement of work on the schedule, occurs only when appropriate resources are available, and is done primarily by priority and geographical feasibility. Executing & Work is performed. Special instructions or information is Reporting included in the electronic and printed work order. Electronic feedback from the technician is also recorded. Was the plan correct? What should be changed? How was if found? How was it left? Failure mode info. Continuous Future plans are adjusted. The planner gets a better feel Improvement for repetitive repairs. ‘Bad Actors’ are identified and efforts are focused more efficiently. Actual costs and adjusted projections are used, improving the accuracy of future budgets. A larger percentage of the work is preventive and predictive and emergencies are less common, making the workload more predictable. Continued on next page

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UNIT 1, CH 3

Unit 1 Chapter 3. MMP: The Maintenance Management Process, Continued The MMP Flowchart

Emergency Prev. Maint. Urgent Normal

Notice in the flowchart below that there are four distinctly different routes the work order can take: • Normal Maintenance – (Green) The work order visits every block, including the planning and scheduling backlog. • Urgent Maintenance – (Tan) The work order does not pause in either backlog, but is fast-tracked through planning and scheduling. • Preventive Maintenance – (Blue) Skips all blocks except Scheduling and Execution (i.e. - because it is already approved and planned at inception). • Emergency Work – (Red) Goes immediately to Execution, and then Approval is sought after work has begun (dotted line).

Plan & Estimate

Identify & Prioritize

Approve

Emergency Prev. Maint. Urgent Normal

Execute & Report

Scheduling Backlog

Planning Backlog

The Abbreviated MMP Flow

Schedule

Procure

Please observe the modified chart below. You will be seeing a lot more of it. In fact, this depiction of the MMP process is at the top of every page throughout the next two units as a reminder to step back and consider the whole picture, while learning the details. The next unit explains each functional step of MMP in detail. Remember to keep things in perspective, as you follow along.

Identify & Prioritize

Air Liquide America, L.P.

Plan & Estimate

Approve

Procure

Schedule

Execute & Report

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Unit 1 Chapter 4. Maximo Enterprise Asset Management (EAM) Introduction

What is Enterprise Asset Management? Specifically it is the coordinated effort to make the purchase and maintenance of production equipment as cost effective as possible. It’s a work order system, for sure…and it’s also an inventory system, a purchasing system and a maintenance financial system. It’s Maximo 4i, the Enterprise Asset Management System. What the maintenance software industry used to call Computerized Maintenance Management Systems (CMMS) they now call Enterprise Asset Management (EAM). This happened when huge Enterprise Resource Planning (ERP) packages, like SAP and Oracle, moved into the neighborhood and CMMS found itself competing for survival. It was felt that EAM better described the scope of function attainable and benefits gained…both in conjunction with these larger packages (as bolt-on functionality)…and instead of the larger packages, based on ability to market best of breed status, as an independent, stand-alone package. The competition has effectively raised the bar in maintenance management. EAM systems of today are vastly improved versions of their predecessors, offering thin client capability, handheld technology, superb financial integration and reporting functionality unheard of only a few years ago

How Did We Pick Maximo?

We enlisted the help of an independent third party consultant to visit all of the major CMMS/EAM vendors, putting their best people to the test, to see how their software could handle our requirements. We were pretty demanding. We wanted a system that could handle not only the unique business processes we have at ALA, L.P., but could also manage our geographical constraints. We wanted a powerful system, that could link an entire country via the internet, and interface with our Oracle financials, but we wanted it to function on a palm pilot if required. We wanted a system substantial enough to integrate multiple business units, conducting different types of businesses under totally different rules. We needed to be able to link hundreds of customers, thousands of equipment items, tens of thousands of parts…into a single database. But we wanted even the casual user to find it straight-forward and User Friendly. Continued on next page

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UNIT 1, CH 4

Unit 1 Chapter 4. Maximo Enterprise Asset Management (EAM), Continued How Did We Pick Maximo? (Cont’d…)

Maximo 4i was consistently rated the best by trade magazines, surveys and individual evaluation. We found it is very compatible with Oracle and is, in fact, an Oracle preferred partner. We visited MRO Software, the company who markets Maximo 4i, and we put them to the test. We found Maximo to be powerful, simple, well-integrated, easy to use, well-known, highly-rated, Oracle compatible, and it fit the needs of Air Liquide.

What Can Maximo Do?

Maximo gives everyone better visibility and control of maintenance: the processes, the tools, the assets, costs, etc. Asset maintenance costs can be difficult and sometimes impossible to ascertain in the absence of an EAM system with links to the financial system. Maximo has an important role in this improvement process since it will give us the cost information we need in order to improve maintenance and reliability. Maximo EAM System offers: Complete visibility of the scheduling of normal and preventive maintenance, and capital projects. Materials management resulting in inventory levels tuned to maintenance operations. Costing of equipment, capital projects, and individual work. Integration of skills availability into the maintenance planning process.

Who Else Uses Maximo?

Resulting in: Reduced maintenance costs due to better inter-dept. coordination Increased equipment availability Optimization of materials to operational requirements Transparent cost management Better maintenance decisions Maximum utilization of the available skill base

Companies you know in all different business sectors, a very few of which are listed below: Business Sector Consumer Electronics Distributors & Manufacturers Food and Beverage Automotive Pharmaceutical Oil & Gas / Chemicals Federal

Company Intel, Hewlett Packard, Motorola Rockwell, Owens Corning, SKF, WESCO, Trane Coca-Cola, Nabisco, Heineken General Motors, Ford, Toyota, Volvo, Honda Merck, Abbott Labs, Bristol-Myers BOC Gases, Chevron Texaco, ExxonMobil NASA, CIA, FAA, Dept of Defense Continued on next page

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UNIT 1, CH 4

Unit 1 Chapter 4. Maximo Enterprise Asset Management (EAM), Continued And What Do THEY Say?

They basically say the same things we do. Overwhelmingly, people that USE Maximo…LIKE Maximo. Once we began the implementation process, we started bumping into other companies who, like us, were implementing Maximo. We visited the MRO World annual conference, examined other implementations already live on Maximo 4i. Overwhelmingly, we found people (from mechanics to managers) were very happy with their choice of Maximo 4i. Many of them had recently abandoned the major CMMS / EAM vendors we had already crossed off our list.

What’s Next?

Now you know a little about MMP and a little about Maximo. In the next Section, you can read how we will use MMP and Maximo to improve the bottom line, streamline the maintenance process, cut costs and make Air Liquide a safer more efficient place to work.

Air Liquide America, L.P.

Page 23 of 87

Unit 1 Chapter 5. The ALA / Maximo Implementation Introduction: MMP Meets MAXIMO

The decision to support the MMP philosophy with Maximo 4i technology is a sound one. MMP is fueled by data, reams of data. It requires standardization, adherence to best-practice, and a commitment to processdriven efficiency. Maximo is a huge data management tool, and it is a software program that actually enforces standardization, facilitates adherence to best practice and is built on process driven efficiency.

The Big Picture

If you can imagine the shuffle that takes place every single day, to coordinate and correctly execute all the maintenance tasks, done by all employees, with all the required parts, affecting all equipment, all over the country, then you can understand why a standard business process is warranted. Enter MMP, Air Liquide’s Maintenance Management Process for Large Industries. Now, imagine an asset management software tool, designed with one mission - to support your business rules, facilitate your decisions, recognize your requests, and expertly carry them out for you, time after time, with perfect precision – and you have Maximo 4i, a tool that does this extremely well.

The Solution Workshop

Merging the MMP philosophy with the Maximo Enterprise Asset System, addressing gaps and issues, identifying challenges and opportunities, is no small task. As previously mentioned, we held solution workshops. Basically, that means assembling employees from all over the country at a central location, to execute and re-execute business procedures. We identified issues and concerns, discussed possible solutions, learned, re-discussed and documented…everything. What immediately became obvious was not just that there were many problems…but that our employees were already aware of them…and many had been successfully dealing with them for years. Furthermore, our employees were very adept at identifying opportunities for improvement and when offered the chance to make things better, their contribution was invaluable. Unfortunately these solutions were developed individually and often conflicted with each other. We feel extremely confident that with the information and assistance provided by our employees, we can make great strides toward continued improvement. Continued on next page

Air Liquide America, L.P.

Page 24 of 87

UNIT 1, CH 5

Unit 1 Chapter 5. The ALA / Maximo Implementation, Continued Configuring Maximo

Configuration is a systematic and controlled modification process. It involves lots of documentation and it is very complex, time-consuming and tedious. The following must be done for every single change: Function Define User Requirements

Description It must be spelled out explicitly in plain English, why this change is important. There must be a User Requirement for every change made to the system. Write Functional How will this be done in the program? Is it a code Specifications change, a screen modification, a database change? This is similar to the User Requirement, but is a technical specification, written in technical terms. Configure Changes Execute the change to the system according to the Functional Specification. Document New Usually this means modifying the existing Functionality documentation to reflect how the functionality has changed. Test Configuration Retest the system to make sure it functions as desired. Are other areas impacted? They must be re-tested also. All the documentation must be reviewed, the test Approve results must be captured, and the new configuration Configuration must be approved. (Sign Off) FDA Validation Because we handle certain products that are used in medical service, much of what we do must be validated. Basically, the FDA wants to know that we took a systematic and rational approach to modifying Maximo (and it therefore still works properly). FDA Certification This means everything is validated, and our implementation of Maximo is certified for use in Medical sites.

Optimizing Maximo

All of the above was mentioned just to say this: Although modification is neither a small thing nor a simple process, it is about change. It’s about reevaluating and re-configuring and constantly improving. Maximo was rolled out early this year as a tool to help us get moving in the right direction. Three major components that were missing were the purchasing interface, the requisition approval process, and the work order approval process. But we didn’t let that stop us. And now the foundation is in place. Continued on next page

Air Liquide America, L.P.

Page 25 of 87

UNIT 1, CH 5

Unit 1 Chapter 5. The ALA / Maximo Implementation, Continued Optimizing Maximo (cont…)

In Phase II, we will be adding the missing components. Maximo Requisitions will be functional. Workflow will automatically route work order and requisition documents for proper financial approvals based on approved spending limits. As with any system, we felt it would be prudent to revisit the Maximo configuration, and the MMP process before implementing Phase II. Therefore, an MMP Optimization Team was formed to take a look at the current process and the existing configuration and identify areas where it could be improved. In October 2002, an Optimization Team reviewed over 100 recommended improvements and found many could be grouped into a few MMP design changes. These improvements streamlined and simplified Work Order priorities and statuses. Many other problems were solved by making simple changes to screens and tables within Maximo. As a result, you should find both MMP and our Maximo configuration more efficient and user-friendly.

The Maximo Evolution

The Maximo and MMP solution will continue to evolve over time as the organization changes and evolves. The system will undergo continuous improvement and optimization to enhance its effectiveness and ability to meet the needs of the users.

Air Liquide America, L.P.

Page 26 of 87

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Unit 2: The Maintenance Management Process Introduction Overview

Header Flowchart

Responsibility List

Customer vs. Partner Relationship

This unit describes the Air Liquide Large Industries Maintenance Management Process (MMP), beginning with a short introduction, and following up with a descriptive section on each MMP Functional Step. Students familiar with MMP should consider this an opportunity to review. Notice that the very basic flow at the top of the page contains functional blocks for each step in the Maintenance Management Process. There is a similar flow at the top of every page in this unit. On the next page, the “Identify and Prioritize” block is highlighted, and it’s no coincidence that just below that, the section title is “Work Identification and Prioritization”. This highlight changes appropriately as the topic changes, so that the reader will always know where we are in the Maintenance Management Process. In the right margin is a list of MMP responsibilities/roles, from Production Tech to Plant Manager. As the Functional Steps of MMP are being discussed, the roles and responsibilities under discussion will change. Different people will be involved. A technician will finish a task and a planner will begin one. The appropriate role/responsibility will always be highlighted at the right, just as “Planner” is highlighted on this page, so that the reader will always know who we are in the Maintenance Management Process. So how does maintenance relate to operations? What is our relationship? In some ways, maintenance is the vendor and operations is the customer. But is this the extent of our obligations? No. We understand that operating and maintaining a plant requires teamwork. We cooperate in generating and adhering to a daily schedule. Maintenance is responsible for work and job readiness. Operations is responsible for equipment readiness. We work together within the budget allotted to prolong the life of the equipment assets, cooperating to prioritize rationally, communicate continuously, and work efficiently in unison. We work in unison…through teamwork, responsibility, cooperation, and continuous communication. We are partners in the MMP process. Continued on next page

Air Liquide America, L.P.

Execute & Report

Production Tech

PL Plant Manager

OS Plant Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Planner

Maintenance Scheduler

Maintenance Engineer

RC Manager

Zone Production Manager

Maintenance Manager

Executive Management

Page 27 of 87

UNIT 2, Introduction

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Unit 2 Introduction, Continued RACI Matrix

Production Tech

The following Simplified RACI addresses the Roles and Responsibilities of personnel involved in the MMP process and defines each relationship, as it relates to Maintenance and Reliability of plant equipment. • R = Responsible • C = Consulted • A = Accountable • I = Informed

Simplified RACI

s s PM s PM Jo bP Pd lan M s Da t ac Pd olle M Da ctio ta n CB A na M lys Ac is tio nI tem Wo s

gm t

A R R R R R R R R R R

R R R

Pla n

Cr ea

te

Ma in

tM

Reliability

Pro ce Wo ss rk Or Wo de s rs Ap pro va Pr l oc u re Ma Re ter ce ial ive Ma Sc te r he ial du le As Wo sig nW s ork Pr ep are Eq Co uip mp me let nt eW &P Sa ork erm fet yA its c tivi Ma t int ies en an Co ce st Re Co po n tr rts RC ol/ Bu FA dg s et RC Pre M pa rat An MO ion aly s si C

Maintenance

BUSINESS TITLE RC Manager Maintenance Engineer Reliability Engineer Maintenance Planner Maintenance Scheduler Maintenance Coordinator Maintenance I&E Supervisor Maintenance Specialist Production Tech Plant Manager (Pipeline) Plant Manager (On-Site)

The MMP Flowcharts

C A C R R R C C R/A I R/A I I I R I R R I R R R

R A R R R

C/I C/I

R

R R R R R R/A C/I R R/A C/I R

Execute & Report

I

R I R I I I C R/A R C R/A C R/A I I C/I R I R I

I I

I R R I R A A

R/A R/A R/A A A R R/A R R R R R R C R I C R R R R I R R R R R C/I R R I R C C/I R R I R C C/I R R C R C C C C/I I C/I C/I C/I R I R C/I R A R R I R C/I R A

A I A C/I A R R R R R R/A R R/A R R C R R C R C R C R R R C R R C C C R R

I I

R R

I I

R R

Before continuing, please study and understand the flowcharts in the Appendix and visit the “Large Industries Maintenance Strategy” section of the Introduction. Much of the MMP process was created to facilitate the differences in the Work Order Process for Pipeline Zones and the Work Order Process for the On-Site Zones. Note that the simple flowcharts depicted in the header of each page, while similar to the flowcharts mentioned in the Introduction, and those shown in Appendix, are by no means complete. They are extremely general and should be used as a very basic reference only.

PL Plant Manager

OS Plant Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Planner

Maintenance Scheduler

Maintenance Engineer

RC Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 28 of 87

UNIT 2, Chapter 1

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Unit 2 Chapter 1. Work Identification and Prioritization Introduction

Production Production Tech Tech

The first step in MMP is Work Identification and Prioritization. For consistency, this is done the same way every time. Understand, however, that the same person may not do it every time. You will notice that the “Identify and Prioritize” block is highlighted at the top of the page, but quite a few role/responsibilities are highlighted in the right-hand margin. This is because many people can create a Work Order. Day to day operations lead to identification of maintenance needs in the plant. Some jobs require a work order and others do not. There are simple guidelines to follow that will help the user decide if the work order is necessary. They are listed below.

What is a Work Order?

Parts of the Work Order

Before we get into when and when not to create a work order, lets make sure we understand just what exactly we are talking about when we use the term. A work order…is a transportable (in this case, electronic) document, which holds all the information necessary to describe a maintenance need, and the supportive data to have that need efficiently addressed by the appropriate personnel.

A work order, electronic or otherwise, will typically contain the following pertinent information: Part Function WO Description What the person creating the work order desires from maintenance. It may or may not be technical. (Investigate loud noise, fix leak, etc…) WO Priority The urgency of the request. How important is this? Created On Created By

This is very important. The “Created On” date plus the “WO Priority” are needed to schedule work. Who created the work order? This is the person to contact if questions exist concerning the work order Continued on next page

Air Liquide America, L.P.

Execute & Report

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Page 29 of 87

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued Parts of WO

(cont’d…)

A work order, electronic or otherwise, will typically contain the following pertinent information: Part Location

Equipment #

GL Account

Job Plan

Work Order Required

Function Where is the equipment item physically located? How does the technician get there? Perhaps the Location number is a logical identifier or perhaps the description contains the location information. The unique equipment identifier, Air Liquide equipment number. This number will stay with the equipment item even when it is not installed. It belongs to the equipment from cradle to grave. No two equipment items can have the same number. It is similar to a serial number. Who pays for the work? This is stated right up front, so that purchases from the warehouse, or from an external vendor, or just for plant labor, can be charged appropriately. The heart of the work order. The Job Plan (or task list, or operation steps, etc.) contains the steps necessary to address the identified maintenance need.

A work order is required under certain conditions. The following chart summarizes when a work order is typically created. A WORK ORDER is required if any statements below apply: An outside contractor is used. Work History is desired. Financial History is desired. Work is Preventive Maintenance. Work requires parts from warehouse stock, or externally procured parts (exceptions exist)

Examples: A Pump Reseal (history, permit, parts) Change Air Filter (PM, parts) Hydroblasting (contractor) Shop clean all day (labor - financial history)

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

Page 30 of 87

UNIT 2, Chapter 1

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued Work Order Not Required

Usually multiple conditions must be true for a work order not to be appropriate. The following chart identifies some events, which typically do not merit/require a work order. A WORK ORDER may not be required if: Work is routine/unskilled -andCost is insignificant -andParts are not required -andHistory is not important

Rule of Thumb

Basic Work Types

Examples: SOPs Daily Rounds Housekeeping Add Oil to Equipment

Tightening Packing Gland on Manual Vlv. Light Bulb change, etc…

It is not always easy to decide whether or not to create a work order. Often it is a judgment call. Typically, as the complexity and/or cost of the job increases, or more entities become involved, the probability that a work order is warranted also increases. If you are unsure, write a work order.

As previously stated, there are 2 types of basic maintenance work, scheduled daily, executed according to priority, identified in the Priority field. They are listed below and discussed in the next section. Work Type Preventive Corrective

Pri 99 3 2 1

Description Planning Time-based (pre-approved) Pre-planned Emergency * No (initial) planning Urgent Immediate planning Normal Routine planning * Call RC, if required

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Continued on next page Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 31 of 87

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued Emergencies

Notice that neither of the two identified types of work on the previous page were emergency work. There is a reason for that. Emergency is not a work type. It is a priority type. It expresses urgency only. It says nothing about which procedure to use, or how costs will be accrued, or how to proceed. It just says, “Whatever you’re going to do, do it now!” Additionally, how important is an “emergency” once it is determined that the parts won’t arrive for 3 more weeks or the broken down equipment will be scrapped and another plant will make up the lost production. In both cases in the last paragraph, the urgency went away before the job was completed. As long as emergency is just a priority, it can be downgraded when required. If special emergency work orders are created, how will we know when the emergency has passed? Creating a new work order is not feasible. Answer: Downgrade the priority.

Planning Emergency Work…

Question: How do we plan emergency work?

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Answer: The same way we plan ordinary work (all except for day one). On day one, we mobilize equipment, tools and people and we attack with a vengeance. But what about day two? We’ve got a 24-hour head start on day two. That head start can be used for planning, right? Question: Don’t we treat EMERGENCY work differently? Don’t we skip planning and go straight to execution? Answer: Yes…Absolutely…And if the RC is involved, they should be contacted BY PHONE IMMEDIATELY…On day ONE…But emergency does not mean no planning. It just means start quickly…then PLAN DAY TWO…and beyond… Continued on next page

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 32 of 87

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued Preventive Maintenance

A PM (Preventive Maintenance activity) is a prescribed maintenance task done on a frequency or condition, to a designated equipment item. Typically, PM work orders are generated automatically by a CMMS or EAM program. At Air Liquide America, that program is Maximo 4i. Typically, PM work orders costs are approved in advance. There are two times the average user will encounter a PM. First, when the PM is due and a work order has been created directing a technician to execute the task associated with the Equipment item it references. This might be your job if you are a maintenance technician, or you might be asked to tag out a piece of equipment for a PM if you are an equipment operator, or you might be asked to sign a safety permit if you are a supervisor. The other time you might encounter a PM is when you ask that one be created. If you find yourself doing the same job over and over, or are writing the same or similar work order for the same equipment item on a regular frequency, you might request a PM work order instead. You would make this request to the RC.

The PM Work Order

It is not the intent in this section to explain the use of Maximo 4i. This will be done in the next unit. But having a basic understanding of PM fundamentals is necessary at this point for understanding the Air Liquide Maintenance Management philosophy. Essentially, a corrective work order and a preventive maintenance work order are identical once both are approved. They have essentially the same information, and function exactly the same way. The visible differences are the PM number, the Priority (99) and the Work Class (PM). There is a big difference however. It has to do with approvals and information origination point. In the corrective work order, everything is done manually, including approval. In the PM work order, both the data and the approval are obtained automatically from the PM Template.

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

Page 33 of 87

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued Exploring The PM Work Order

If you read “Parts of the Work Order” earlier in this section, the definitions of the following work order parts are already understood. In the chart below, the origin of the information is shown for each order type. This is the major difference in the PM work order and the normal work order. Notice how much information is NOT entered manually when the work order is created from a PM Template with Job Plan. Normal Work Order vs. PM Work Order (Where does the information originate?) Work Order Single Normal Many Repetitious Part Work Order PM Work Order(s) WO Description Entered by WO Creator Entered by WO Creator WO Priority Default info when WO Created Created On Default from WO Creator Logon Automatically from Created By PM Template and Entered by WO Creator Location # Job Plan Entered by WO Creator Equipment # Default from Equipment or GL Account # Location Record Entered by Planner Job Plan Continued on next page

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 34 of 87

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued Turnaround Scope Matrix

Starting in 2003, Air Liquide will be using the Turnaround Scope Matrix. Each Work Order will be tested against this matrix to determine if it should be included in the turnaround scope.

TAR Scope Categorization Matrix

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Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager

Work Item Necessity

Shutdow n Requirement Total Plant

Plant Subsystem

Equipment Item Only

M ust Do

P1

S1

E1

Should Do

P2

S2

E2

Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Could Do

P3

S3

E3

Definitions of work items are as follows: Must Do

This is required by law, code or written policy & is necessary to address a known safety or environmental hazard, & also needed in order to re-start the plant.

Should Do This corrects a known failure mode that is measured or predicted to go to failure before the next expected outage. It is also needed to meet defined production requirements (quantity or efficiency) at start-up & until the next expected outage. It is necessary to meet the defined objectives of the Outage or TA & is part of a defined, approved & funded improvement program. Could Do

Work not directly related to the Outage or TA objective

Continued on next page Air Liquide America, L.P.

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Page 35 of 87

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued

Definitions of Shutdown Requirement are as follows: Equipment Work requires only the equipment in question be shut down. Item Only

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager

Plant Subsystem

Work requires that the subsystem that contains the equipment be shut down.

Maintenance Maintenance Tech Tech

Total Plant

Work requires that the entire plant be shut down.

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Interpreting the Matrix

•

Green is work that should be included in this Turnaround Scope

•

Yellow needs to be challenged individually or by similar work groupings

Maintenance Maintenance Scheduler Scheduler

•

Red is initially rejected, but individual items with compelling business cases can be added back in depending on the size of the turnaround budget and if any other funds are available. The Turnaround Scope is built with Green (P1) items first, Yellow (P2, S1 & S2) can then be added if funding is approved. As mentioned,. Red items (E1-E3, P3 & S3) are added only when justified

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 1. Work Identification and Prioritization, Continued LI Maintenance Strategy

Part of knowing how to create a work order is knowing who will ultimately plan the work (if indeed planning is desired) and who will ultimately do the work. Large Industries has many plants in zones far away from any Reliability Center and some plants along the pipelines have the RC within walking distance. This affects who will do what, how the work order will be routed and approved, and in some cases, whether a work order is needed or not. As a user, you must understand this strategy and how it affects you and the plant where you work. Please review this information if necessary. Note: The LI Maintenance Strategy is explained in detail in the Introduction to this manual, Section 3. Review this information if desired. Also, see the Pipeline and On-Site WO Flows are shown in Appendix 1-C, and 1-E.

Initial Approval (to Plan)

Summary

Regardless of where the initiation of the work order takes place, Pipeline or On-Site, the initiator is responsible for identifying the Plant Manager on the work order. This is the final step, and it is imperative that this be accomplished before work order is saved, because the Plant Manager must review and approve the work before it is begun. Creation of a work order can be accomplished by anyone. It is a simple process consisting of the following five steps. Step Action Description 1 Work Order Needed? Determine if a work order is warranted by (Proceed if ‘YES’) evaluating cost, time, resources, etc. Create the work order if appropriate. Your User ID and the current date will be entered automatically. 2 Describe request Explain what action is being requested in layman’s terms (stop leak, repair coupling). 3 Prioritize work order How important is this? Is it urgent, or just routine? 4 Identify Asset Enter Equipment or Location number to specifically identify where work will take place, what will be repaired, who will pay. 5 Forward to Plant Plant Manager approves all work. ALWAYS Manager forward work to Plant Manager by entering the appropriate name in the Plt.Mgr. field.

Air Liquide America, L.P.

Execute & Report

Production Production Tech Tech

PL Plant Plant PL Manager Manager OP Plant Plant OS Manager Manager Maintenance Maintenance Tech Tech

Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Page 37 of 87

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Unit 2 Chapter 2. Planning and Estimating Introduction

Production Tech

As explained in Section 1, the first part of initiating a work order is describing the requested maintenance action and assigning some priority or urgency to the request. The last step is identifying the Plant Manager. This effectively places the work order in the Plant Manager’s queue and concludes the initiators responsibility. This also concludes the Identify and Prioritize phase of MMP. The Plant Manager routinely searches for unapproved work orders, in which he/she is identified/designated. This is how the Planning and Estimating phase of MMP starts. He/she decides how formal the planning process will be, or whether it will occur at all, and routes the work order accordingly by setting an appropriate status. What happens next is the subject of this section.

The Plant Manager

The Plant Manager may be the senior operations person on site, or he/she may be the only operations person on site. Below is a list of the Plant Manager’s MMP responsibilities:

• • •

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

The Plant Manager: • •

Execute & Report

Is the senior (and possibly the only) operations person on site. Is responsible for reviewing all work orders originating on the plant site and determines how they will be handled thereafter. Reviews ALL locally originated work orders before they are submitted to planning or executed without planning. Is the first line of approval and has final authority up to $5000 Approves ALL local site work orders for execution (after planning)

Maintenance Maintenance Engineer Engineer RC Manager

(Additionally) On-Site Plant Managers: •

Pipeline vs On-Site Plant Manager

May initiate, plan, approve and manage work orders locally up to $5000 without involving the Reliability Center.

The Pipeline and On-Site Plant Manager’s roles vary slightly in some instances due to geographic differences (distances from RC). This is covered in Unit 1, Section 2, the Large Industries Maintenance Strategy. You should familiarize yourself with this strategy before proceeding. Continued on next page

Air Liquide America, L.P.

Zone Production Manager

Maintenance Manager

Executive Management Page 38 of 87

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Unit 2 Chapter 2. Planning and Estimating, Continued Pipeline Plt.Mgr.

Production Tech

Just as the person who identifies the work must decide whether or not to create a work order, the Plant Manager must decide how the work order will proceed. The Plant Manager has several choices, depending on whether he/she is a Pipeline Plt.Mgr. or an On-Site Plt.Mgr.. The Pipeline Plt.Mgr.’s choices are listed below: Pipeline Plt.Mgr. May: Cancel Work Order (reject) Approve Work Order to Plan (by RC Only) Defer work until a later time.

By Setting Status to: CAN PLAN DEFER

Execute & Report

Result

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech

Work Order is canceled. Work Order forwarded to Reliability Center Planner Work Order progression stops. Can be changed to PLAN later.

Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

On-Site Plt.Mgr.

The On-Site Plant Manager has a few more choices because of relative isolation of most of the OS plants. They are listed below: On-Site Plt.Mgr. May: Cancel Work Order (reject) Approve Work Order to Plan (> $5000) Approve Work Order to Plan & Execute Locally (< $5000) Approve Work Order to Plan & Execute by the RC (< $5000) Defer work until a later time.

By Setting Status to: CAN PLAN

Result Work Order is canceled. Work Order forwarded to Reliability Center Planner

Work Order not forwarded to CRTD Reliability Center Planner (no change) (opts for local planning/execution) Work Order forwarded to PLAN Reliability Center Planner (opts for RC planning/execution) Work Order progression stops. DEFER Can be changed to PLAN later. Continued on next page

Air Liquide America, L.P.

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Zone Production Manager

Maintenance Manager

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Unit 2 Chapter 2. Planning and Estimating, Continued Risk

Risk Levels

Often, the RC must be involved, even if the cost of the work order is under $5000. Often RC involvement is driven by factors other than cost. The following are examples of Low, Medium and High Risk jobs. Risk affects the determination of whether the RC needs to be involved. See the LI Strategy in the Introduction.

Low Medium

High

Complexity

Production Tech

Another factor the OS Plt.Mgr. must consider when determining how a work order will proceed, is the inherent risk, the possibility that harm or loss will occur? Merely looking at the estimated cost may not give a clear picture of its importance.

Risk

Description of Job Instrument Calibration, Changing lights in panels, Changing oil filters, Insulating, Painting Repacking cooling tower water pumps, Exchanger cleaning, Transmitter replacements, Analyzer replacements. Repair LOX pumps, Mole sieve valve repairs / replacement, Any compression equipment overhaul, All turnarounds, Motor repairs / replacement.

As previously stated, the plant must have the talent to accomplish the repair, even if it turns into a total mess. Murphy’s Law is a consideration. Complexity Low Medium High

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Description of Job • • • • • •

Execute & Report

Painting Insulating Transmitter Replacements Analyzer Replacements Repair LOX Pumps Mole Sieve Valve Repairs & Replacement

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 2. Planning and Estimating, Continued The Goal

The Planner

Production Tech

Again, the goal is bringing our best material, our best tools, and our best talent to bear, as often as possible…but especially when it is most likely to be a deciding factor in the outcome. This is what must be in the back of our minds as we make those daily decisions that impact our goals. Work appears in the Planner’s query when the status is “PLAN” and the Planner field contains the planner’s name. It leaves his queue when the status is “WAPPR”. Below is a list of the planner’s responsibilities: The Planner: • • • • • • • • • • • • • •

Execute & Report

Checks queue frequently for newly created work orders. Takes ownership of work order once received and until scheduled. Knows the plant equipment. Knows maintenance best practice. Determines job execution procedure. Plans how work will proceed. Assigns labor and allocates materials. Creates purchase requisitions as necessary. Concentrates on future work and not daily activities. Expedites as necessary per priority / urgency. Actively pursues financial approvals on critical work orders. Plans Turnarounds, providing work order estimates as necessary. Works within budget constraints on TAR work orders. Forwards work order for financial approval when planning is complete. Notifies Scheduler when work order is completely ready to work. Communicates work order information with Operations as required.

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Planning the Work Order

The procedure for planning the work order is very straightforward. At a minimum, the work order must have enough information to assign technicians and schedule the proper time slot (i.e. – How may craftsmen? How many hours?). This satisfies the scheduling process requirements, and is often all that is necessary for simple jobs. As jobs become more complex, more detail is required. Often the sequence of events becomes important. Multiple crafts may be involved. The planner often remains associated with major jobs long after they have left his desk, since continuity becomes more important with more complex jobs. Continued on next page

Air Liquide America, L.P.

Zone Production Manager

Maintenance Manager

Executive Management Page 41 of 87

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Unit 2 Chapter 2. Planning and Estimating, Continued Planning the Work Order (cont’d…)

Production Tech

As jobs get more complex, so does the Planner’s responsibility. For more complex work orders, the Planner visits the job site to formulate the best possible strategy for effecting the repair or replacement. Ideally, he/she orders all of the appropriate parts, assigns the appropriate crafts, for the correct amount of time, with the proper instructions, tools, and parts. Finally, he submits the work order for approval and notifies the scheduler when it is ready to work. Many times work orders must be re-planned. The job changes, a leak is found, the base is cracked, etc. Jobs that were considered simple sometimes become complex quickly. Often the scope of the job changes after the jobs have begun.

Your Planning Role

The planner’s background will typically be in some electrical or mechanical field, and he may have other knowledge that makes him well suited for his position. But a planner is not expected to know the intricacies of instrumentation, welding and laser alignment. So where does he turn? Often he goes to an instrument technician, a welder, or a machinist. Planning can be anybody’s job, and Maximo doesn’t care, so don’t be surprised if one day you are asked to share your expertise in a job plan. He may just ask that you inspect an item at your local plant to save him a trip, or you may be asked to determine and document a detailed course of action, and within the parameters of your assigned access level, Maximo facilitates the request, with appropriate functionality.

The Job Steps

The individual steps of the work order are sometimes referred to as the Operations List or the Job Plan. These are the sequential steps created by the Planner to describe the procedure for affecting the repair desired. Each step is numbered sequentially in order of execution, so it becomes easy for the technician(s) to follow the Planner’s Job Plan. The Planner may create an infinite number of steps, and may allocate internal materials, and craft resources and external purchase orders for labor and/or materials to each step. Continued on next page

Air Liquide America, L.P.

Execute & Report

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Zone Production Manager

Maintenance Manager

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Unit 2 Chapter 2. Planning and Estimating, Continued Planning: FYI

Craft Assignment

Warehouse Material Allocation

Execute & Report

Production Tech

As a rule of thumb, Planners do not create multi-step jobs when a single step will suffice. (i.e. – “Calibrate Transmitter” is perfectly acceptable single step instruction for a technician who has calibrated many transmitters). The most typical use for multi-step job plans, is for more complex multi-craft jobs. The assignment of crafts is done to identify the type of work to be performed and to allow the Scheduler to select the appropriate work orders for the resources available. No attempt is made by the Planner to assign specific individuals with the Job Steps. This is the responsibility of the maintenance coordinator, when the work order is assigned to him/her for execution. Materials can be allocated from the warehouse if desired and needed. These materials can be selected from the Bill of Material associated with the equipment item, if it exists. They may also be ordered directly from the warehouse. This is all standard functionality with Maximo 4i. Allocating material from the warehouse forewarns the warehouse manager that there is a demand for the specific parts indicated. He uses this demand information to order parts more efficiently. Note: This demand that is associated with a work order is often referred to as a parts reservation in the warehouse. When a reservation exists for a part and it is associated with an unapproved work order, it is called a soft reservation. When the order is approved, the reservation becomes a hard reservation. All of this has ramifications for the warehouse replenishment process.

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Continued on next page Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 43 of 87

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Unit 2 Chapter 2. Planning and Estimating, Continued External Purchases

Execute & Report

Production Tech

Vendor parts or contractor labor should be procured on a Maximo Requisition. The benefits will be explained in detail later, but are sufficiently important to also be shown below: Purchasing via Maximo Requisition & Linking Requisition to Work Order Job Step Planner’s intent is more obvious. Plan is now complete. Work order less apt to be scheduled without critical parts and therefore less likely to be interrupted. Parts linked to work order are less apt to be misplaced or confiscated for another job upon receipt at warehouse. Planned cost of purchase included in planned cost of work Operations order and visible at Approval. Parts used previously remain in history for inspection when and Maintenance planning future (similar) work orders. Accurate vendor material and contract labor costs captured Benefits: against Equipment only if Maximo Requisition is used. Oracle interface updates actual cost in WO at goods receipt. Parts on Maximo BOM are easily purchased on a Maximo Requisition (BOM cannot be viewed from Oracle). Oracle interface will track Maximo items on order and update the “on order” information for individual items. Vendor Lead Time is tracked and used for vendor evaluation Oracle interface updates the “on order quantities” for all items insuring accuracy of Maximo warehouse “replenishment process”, so that sufficient stock levels are maintained automatically. Inventory Oracle interface will update planned cost with item cost on Benefits: Maximo items ordered. Oracle interface changes actual Maximo item cost in inventory control, and last purchase price in item record. Oracle interface will automatically close associated PO’s after certain accounting conditions are met.

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 2. Planning and Estimating, Continued P-Card vs. Requisition

•

•

General Rule

Production Tech

Since most employees, who are responsible for purchases of maintenance supplies and materials via CSM PO, can also create a Field Direct PO, and they have a P-Card, the three options are understood: •

Execute & Report

A P-Card is basically a way to buy items quickly, on credit, with only a minimal amount of information, and for the purpose it serves, it does a good job. However, P-Card activity is not tracked in Maximo, so for maintenance repair, repair parts and repair service, it’s use, although not forbidden, is discouraged. For this reason Air Liquide has limited P-Card usage for maintenance purchases to a maximum of $1,000 per transaction. The Field Direct PO, although a genuine Purchase Order, bypasses Corporate Supply Management and the approval process. It is created and approved by the initiator, and is for low risk, relatively low value, simple purchases, that do not require warranties and/or guarantees. Therefore, it has policy restrictions for its use.(less than $10K) The CSM PO is the appropriate tool…if there is equipment history relevance, or significant complexity involved in the purchase, or substantial risk or cost associated with the item. More information is required: an approval process, justification, and estimated price, and a designated entity to pay the bill. It enforces accountability.

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Concerning a purchasing transaction…remember this…

If it doesn’t start in Maximo… …It won’t get back to Maximo. Continued on next page

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 2. Planning and Estimating, Continued CSM Decision Matrix

Production Tech

Corporate Supply Management has created the following decision matrix to help the user determine when to use the P-Card, Field PO, or CSM PO. Strategy Dollar Value Terms and Conditions Complexity – Products

Complexity – Services

Risk of: Property loss • Revenue loss • Injury or quality issues Performance or Mechanical Guarantees req’d Frame Agreement O2 Cleaned Maximo Requisitions •

For Maintenance P-Card * Field PO < $1000 < $10,000 * See Below None CSM PO T & C’s Required accepted by Supplier Simple • Low complexity Product • Catalogue Item • Routine Product

CSM PO > 10,000 Add’l T’s & C’s and negotiation required. •

Engineered item with specifications • First time purchase of item Simple • Good • Detailed plans Services history/experien required ce with supplier • Well defined R & R required • Routine work • Simple scope of • High potential for work disputes None exist Minimal risk Risk potential exists

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

None required

None required

Within

Within

Warranty with specified damages required. 100%

No No

No 100%

100% 100%

Zone Production Manager

Maintenance Manager

Limitation is < $1000 for maintenance-related purchases. Continued on next page

Air Liquide America, L.P.

Execute & Report

Executive Management Page 46 of 87

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Unit 2 Chapter 2. Planning and Estimating, Continued Work Order Planned Cost

Production Tech

All of the resources that can be allocated to a work order have an associated value. Craftsmen have hourly rates. Materials have a unit cost. Requisitions for labor and material have an estimated cost per line item. The sum of these costs make up the Planned Cost of the work order. This cost is the amount used in the approval process, which is discussed in the next section. Note: The work order eventually becomes a permanent record complete with actual costs. Internal labor (an employee) reports actual time after the fact, internal (warehouse) materials are actually issued to the work order, external requisitions become purchase orders, to which are posted actual receipts of tangible goods. All these transactions cause the work order to incur costs.

Feasibility

Execute & Report

Each and every a piece of equipment malfunctions or breaks down completely; there is an associated loss of efficiency in the process it supports. This may not be a production process, so there may be no direct impact on production output at all. However, every item of equipment operates to perform some function, supporting some process, which eventually supports production. A loss of efficiency in any process means more effort is required to achieve the same results from that process as were achieved before the equipment malfunction. This extra effort comes at a cost. It may be that more human intervention is required, or more time is required, more electricity is consumed, etc., but compensation for inefficiency has an associated cost. Always, when evaluating the feasibility of a planned repair of malfunctioning equipment, the cost of the repair must be weighed against the ongoing cost of the inefficiency resulting from the malfunction. Since the responsibility of the person who notices the maintenance need is merely to identify it by creating a work order, the responsibility for evaluating the feasibility of the work order falls to the planner. He/she must decide if the repair (or replacement) actually makes economic sense. If not, it shouldn’t happen. Continued on next page

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 2. Planning and Estimating, Continued Work Order Hierarchies

Turnaround Work Orders

Execute & Report

Production Tech

Multiple subordinate (child) work orders can be linked to the same superior (parent) work order, creating a work order hierarchy. It works especially well for linking multiple work orders related by function, such as for a major project. A single parent work order might have multiple children work orders, each with its own complement of children. Costs of any children work orders is reportable at the parent work order.

The way Air Liquide will use the work order hierarchy is for Turnarounds. Turnarounds, or TARs as they are sometimes called, are projects, which include many different types of work, costing thousands of dollars. TARs always require approval of budgeted costs before work can commence. In the past, expense ACE’s were used to submit TAR cost for management approval. The work order hierarchy in Maximo will replace these expense ACE’s. In Maximo, the parent work order of the hierarchy becomes the TAR work order. The TAR work order addresses a number of special needs. Several special functions are used to meet specific TAR requirements. For example, the planned cost of the work order takes on extra significance. This becomes the “not to exceed” (budgeted) amount of the Turnaround. The cost estimate for the entire TAR will be entered on the TAR (parent) work order ‘Plans’ Tab. This will be done by entering one job step for each major job on the TAR. There might therefore, be separate job steps for “overhaul mac”, “derime”, and “repair cold box”, etc. Each of these job steps would have an estimated cost in labor and materials, which would be entered in the labor and materials tabs of the job plan. Because the parent TAR work order will take the place of expense ACE’s, it must also include the total estimated cost of the TAR. This TAR work order will be routed to upper management for approval via workflow, typically weeks or even months before the actual TAR will take place. Child work orders can be attached and planned, once the TAR is approved. For instance, in the above example, separate child work orders would be created for “overhaul mac”, “derime”, and “repair cold box”.

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Zone Production Manager

Maintenance Manager

Executive Management

Continued on next page Air Liquide America, L.P.

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Unit 2 Chapter 2. Planning and Estimating, Continued Turnaround Work Order Approvals

Production Tech

Approval occurs via Maximo workflow. The approval process is similar to that of a normal work order, except for the actual approval routings, which change automatically. As previously stated, once the TAR is approved, child work orders are created for each defined task. Labor and materials are allocated to these work orders. This results in planned costs per child work order, which can then be compared with the estimated per task costs of the TAR work order. Essentially, the result is a work order hierarchy. The single parent work order represents the TAR and contains the budget, a listing of all the tasks to be completed, and an estimated cost for each task. This is for approval purposes only. Each task has an associated child work order, through which the actual work will be accomplished, and by which actual costs will be conveyed. The child work orders will contain real planning, real labor, and real materials. The resulting costs will be real, and visible in the TAR work order, so that a comparison of budgeted and actual expenses is possible. What remains is approval for the child work orders, which pass through the approval process in Maximo just as the TAR/parent order does, with a simple exception. Since the overall cost of the TAR has been approved, sub-orders linked to approved TARs require less approval authority.

FYI: TAR Work Orders

Execute & Report

So now you know basically how TARs will be handled, and a little about what goes on in the background. The approval process, and just about everything else about TARs, is fully automatic. All of the other functions described in the previous topic are essentially pre-configured in Maximo. The details of this process are already ironed out. For most users, these details are for information only. The typical user doesn’t have to understand how TARs work. Individual work orders which belong to TARs function just like normal work orders, so most users won’t be affected at all. Continued on next page

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 2. Planning and Estimating, Continued Planner’s Backlog

Waiting for Approval

What is the Planner’s Backlog? Very simply, it is all of the work orders in the system, with the status “PLAN”. Exactly whose backlog a particular work order will belong to, is easily determined by looking at the Planner field. (i.e. – A work order with the status “PLAN” and “John Doe” in the Planner field, would be listed on John Doe’s Planner Backlog). Normal work and Urgent work both go directly to this backlog when the Plt.Mgr. approves it for planning. The Planner, however, processes urgent work, first.

Once the Planner is finished with the work order, he notifies the appropriate individuals that it has been planned, contains an estimated cost, and is ready for financial approval. He/she does this in Maximo by changing the status to WAPPR, or waiting for approval. This removes it from his queue, and prepares it for the approval process.

Execute & Report

Production Tech

PL Plant Manager

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor

Maintenance Maintenance Planner Planner

Starting Workflow

Setting the WAPPR status (above) also marks the end of the Planning and Estimating Step of MMP, but because Maximo manages the entire approval process, and the Planner wants it to be approved, he does have one additional responsibility. He must start the Workflow Approval Process, which is actually the beginning of the next Step of MMP.

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC Manager

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Maintenance Manager

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Unit 2 Chapter 3. Approving (Workflow)

Production Tech

Introduction

PL PL Plant Plant Manager Manager

Notice the title above. As stated in the last section, Maximo essentially handles the MMP Approval Process via Workflow. It is important to note however, that Large Industries has had the ACE Approval Process even before MMP, certainly before Maximo, and definitely long before Workflow. The application of this Approval process, however, should be much easier. In Phase I of the Maximo rollout, the User was introduced to Maximo. In Phase II, the User will become well acquainted with some of Maximo’s finer points. Much of the work in Phase I centered on planning and scheduling work, and obtaining appropriate approvals for work. In Phase II, Maximo’s workflow will automate this approval process. It should be noted that the focus of this section is the MMP Approval Process and guidelines for its application. How Maximo Workflow handles this process will only be of incidental concern. Detailed instructions and information about Maximo 4i Workflow are not of concern here, but are presented in The Maximo Maintenance Procedures Manual.

Generally Speaking

The following general statements can be made about Work Order Approval regardless of Dollar Value, Inherent Risk or Plant Location:

Work Order Approval :

Must be obtained from both Operations and Maintenance Is always obtained from the Operations Department first. Does not include the Approval of Requisitions, even if the Requisitions are linked to the work order job steps. Must be obtained before anything is purchased for the job (except for Emergencies). Must be obtained before any work is executed for the job (except for Emergencies).

OS Plant OPL Plant Manager Manager

Maintenance Tech

Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor Maintenance Maintenance Planner Planner

Maintenance Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Zone Production Production Manager Manager

Maintenance Maintenance Manager Manager

Continued on next page Executive Executive Management Management

Air Liquide America, L.P.

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Unit 2 Chapter 3. Approving (Workflow), Continued MMP Approval OS vs. PL Plant Manager

Requisition Approval

Production Tech

The MMP Work Order Approval Process for both Pipeline and On-Site plants is identical except for work orders valued at less than $5,000. As already noted, work orders valued at under $5K can be planned, approved and executed by the On-Site Plant Manager. However, the OS Plant Manager can still send this work to the Reliability Center if the Plant lacks the time, tools or talent to do the work. As stated earlier, work order approval does not include approval of linked requisitions. What work order approval means is that the work order, and thus the work plan portrayed in the work order, is functionally and financially approved at the dollar amount stated. In other words, the stated job plan justifies the estimated total cost. Any proposed external purchase of vendor supplied parts or labor, must undergo a separate requisition approval process. However, as long as the work order is approved, the requisition will require maintenance approval only, per delegation of authority. Note that if work order costs exceed the approved amount, it should be resubmitted for approval at the higher amount. Note: The requisition and requisition approval processes are both shown in the back of this manual. See Appendix I-A and I-B. Maximo Workflow handles the requisition approval process. Workflow also handles approval limits and routing for approvals. This is a fully automated background function.

Requisitions Linked to Approved Work Orders

Execute & Report

It bears repeating…Requisitions linked to approved maintenance work orders are completely routed and approved within the maintenance organization, regardless of cost. The approval for the cost of repair is made on the work order by both maintenance and operations. Note: Yes, this would naturally include req’s linked to sub-orders, linked to TARs.

PL Plant Plant PL Manager Manager OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Zone Production Production Manager Manager

Maintenance Maintenance Manager Manager

Continued on next page Executive Executive Management Management

Air Liquide America, L.P.

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Unit 2 Chapter 3. Approving (Workflow), Continued

Production Tech

Workflow for Work Orders

PL Plant Plant PL Manager Manager

Basically, the work orders enter the Workflow process unapproved (WAPPR, PLAN, CRTD) and providing they are not cancelled, they eventually exit the process approved (APPR), but quite a bit more is accomplished. On Work Orders, Workflow: Because it: Interprets BU from Location on Uses it to route WO for approvals WO In LI it looks at Labor Record of Uses it to route WO for approvals Plt.Mgr. assigned to determine zone. In PL Zones, verifies that PM, Uses this for assignments, routing and MC and MPlnr fields are email notifications populated. In OS Zones, verifies that MC Uses this for assignments, routing and and MPlnr fields are populated email notifications only if WO exceeds $5K. Verifies that WO is unapproved. Rejects WO if status is not unapproved. Checks to see if work order has Will not begin approval process for a an unapproved parent. work order that has an unapproved parent. If planner originates, work order is sent In LI PL Zones, checks to see first to Plt.Mgr. for approval, otherwise it who originated work order. is first sent to Planner. In LI OS Zones, checks to see If Plt.Mgr. originates and WO is $5K or who originated work order and less, it approves, otherwise it sends to total cost of work order. Plt.Mgr.

OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Continued on next page Zone Zone Production Production Manager Manager

Maintenance Maintenance Manager Manager

Executive Executive Management Management

Air Liquide America, L.P.

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Unit 2 Chapter 3. Approving (Workflow), Continued Work Order Approval Authority

Production Tech

The illustration below depicts the delegation of approval authority for all work orders.

PL Plant Plant PL Manager Manager

Note: Maximo Workflow handles this automatically.

OS Plant OPL Plant Manager Manager

Work Order Approval Authority Work Order Value Position / Title Over $50K Sr. VP Large Industries: Business Unit Leader & $25K to $50K National Maintenance Manager $10K to $25K Zone Production Manager &RC Manager $5K to $10K Maintenance Engineer Plant Manager* & $0K to $5K Maintenance Planner * On-Site Plant Manager can approve work order if less than $5K Workflow for Requisitions

Execute & Report

Basically, like work orders, requisitions enter the Workflow process in an unapproved state (WAPPR) and providing they are not cancelled, they eventually exit the process in an approved state (APPR). Additionally, Workflow does the following:

1

On Requisitions, Workflow: Verifies that Ship to and Requestor fields are populated.

2

Checks if the Priority is “0”

3

Verifies that REQ is WAPPR.

4

Reads cost on REQ Checks to see if Requestor is an RC Manager In LI it looks at Labor Record of Requestor to determine zone.

5 6

Because: MIG will REJECT if these fields not populated. “0” causes workflow to cancel Purchase Requisition. It rejects REQ if status is not WAPPR. It auto approves any REQ under $5K It auto approves if REQ is $25K or less. It uses this to assign to correct maintenance engineer if > $5000. Continued on next page

Air Liquide America, L.P.

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Zone Production Production Manager Manager

Maintenance Maintenance Manager Manager

Executive Executive Management Management

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Unit 2 Chapter 3. Approving (Workflow), Continued Requisition Approval Authority

Production Tech

The illustration below depicts the delegation of approval authority for all requisition.

PL Plant Plant PL Manager Manager

Note: Maximo Workflow handles this automatically.

OS Plant OPL Plant Manager Manager

Requisition Approval Authority Requisition Value Position / Title Over $25K Maintenance Manager $10K to $25K RC Manager $5K to $10K Maintenance Engineer $0K to $5K Originator: (Plt.Mgr, Planner, Admin, etc.)

Workflow Requisition Approval

Execute & Report

Effectively, the Requisition Approvals will look like the chart below, since multiple approvals are required, not just a single approval by the first person with authority to approve. Requisition Approval Authority Requisition Value Position / Title Maintenance Engineer, RC Manager, Over $25K Maintenance Manager $10K to $25K Maintenance Engineer, RC Manager $5K to $10K Maintenance Engineer $0K to $5K Originator

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner Maintenance Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Zone Production Production Manager Manager

Maintenance Maintenance Manager Manager

Executive Executive Management Management

Air Liquide America, L.P.

Page 55 of 87

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Unit 2 Chapter 4. Procurement Introduction

Production Tech

Procurement is everything from initiating a requisition through goods receipt and vendor payment. Therefore, we initially touched on procurement when we discussed Planning in the last section. The Planner requisitioned materials to be used as part of the job plan included on the work order. Because the estimated costs of proposed external material and/or labor purchases were included in the total planned costs of the work order, their overall costs were included in the work order financial approval, when the work order went through the workflow approval process.

The Oracle Interface

Execute & Report

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Tech

The next step was to secure requisition approval, which entails an evaluation of value received per dollar spent, a totally different type of approval. This was done through a similar workflow process, and was also explained in the last section. So, at this point, we have Maximo requisitions, which will create Oracle Purchase Orders through the Oracle interface. (Incidentally, we will also have Maximo Purchase Orders, created by Oracle through the same interface…but more on this later.

Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor

What must happen now, is these purchases must be executed. The parts and/or labor referenced in the associated Purchase Orders are needed for the work associated with the work orders. How this is accomplished, is the subject of this section. First, however, we’ll discuss the interface in a little more detail.

Maintenance Maintenance Scheduler Scheduler

As previously stated, Oracle is a financial system and is concerned with ALL purchases. Maximo is a maintenance system concerned with MAINTENANCE purchases. Oracle needs this information because it is responsible for tracking purchasing expenditures, vendor performance, approval processing, etc…on a company level. Maximo needs this same information because it is responsible for tracking repair expenditures, equipment performance, work processing, etc… at the maintenance level. How do we get the same information in both systems without entering all of it twice? Answer: The Interface.

Maintenance Maintenance Planner Planner

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management

Air Liquide America, L.P.

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Unit 2 Chapter 4. Procurement, Continued Interface: Flowchart

Production Tech

Below is a depiction of the Oracle Purchasing Interface. This is one of many Oracle/Maximo interfaces. Notice that some lines are dotted and some are solid. Solid lines represent the actual controlling flow of information.

O r a c le

M a x im o M a x im o REQ (A p p r o v e d )

Execute & Report

REQ (A P P R )

M a x im o R e q u is itio n M ir r o r e d to O r a c le

F ie ld D ir e c t ?

Yes

No

Ap p ro v e d R e q u is itio n C r e a te d in O r a c le

In c o m p le te R e q u is itio n C r e a te d in O r a c le

R e q u is itio n In itia to r A u to -C r e a te s PO

CSM C r e a te s & A p p ro v e s PO

O r a c le P O M ir r o r e d to M a x im o (s a m e n u m b e r )

PO (A P P R )

A p p r o v e d O r a c le P O C r e a te d

O r a c le G o o d s R e c e ip t M ir r o r e d to M a x im o

GR (@ S A V E )

O r a c le G o o d s R e c e ip t P o s te d

O r a c le In v o ic e M ir r o r e d to M a x im o

In v o ic e (@ S A V E )

O r a c le In v o ic e P o s te d

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Production Manager P ro c e s s C o m p le t e

Maintenance Manager

Continued on next page

Air Liquide America, L.P.

Executive Management

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Unit 2 Chapter 4. Procurement, Continued Interface: Explained

Production Tech

The interface allows Oracle to continue controlling the purchasing process. It does let Maximo kick maintenance purchases off though. Essentially what happens is this: A Maximo requisition is created first, and the interface duplicates it in Oracle. From there Oracle has complete control throughout the process, but Maximo gets copies of everything that goes on, as long as it’s maintenance related. Very simple. Purchasing Interface Step-By-Step 1. Maximo REQ is created. This is done in Maximo for a reason. Maximo links any maintenance related purchase to the work order to which it applies. This way, the purchase is tied to the repair for all time. Note: Revisit Chapter 2 and note the External Purchases topic. It lists many benefits of linking the Requisition to the work order. 2. Interface mirrors Maximo REQ to Oracle. In short, an identical Requisition is created in Oracle Purchasing. This is the point of contact for the interface. Information written to the Requisition will eventually find its way to the Oracle PO, which is created in the next step. 3.b. If imported REQ is NOT Field 3.a. If imported REQ is Field Direct, it is INCOMPLETE, Direct, it is APPROVED, and and PO is created later. PO is created now. (By Purchasing). (By initiator or designee). 4. When Oracle PO is APPROVED, it is mirrored to Maximo. Yes, a Maximo PO is also created. Maximo needs this for reporting and data management within the work order cycle. This is done electronically through the interface. The same is true for the next three steps. 5. When Oracle Goods Receipt is posted, it is mirrored to Maximo through the interface. 6. After SIRs are resolved in Oracle, invoice is posted, and it is mirrored to Maximo through the interface. 7. When Oracle Variance / SIR is posted it is mirrored to Maximo through the interface.. 8. Process is complete. Continued on next page

Air Liquide America, L.P.

Execute & Report

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management

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Unit 2 Chapter 4. Procurement, Continued Procurement Process

Production Tech

The previous topic explained what happens in the background, during the Procurement process, but what happens in the foreground? What is Procurement? How does it relate to the work order? How does it fit into the MMP philosophy? A better question might be: Where does it fit into MMP? And the answer would be: Everywhere. MMP Step Identify and Prioritize

Plan and Estimate

Approve Procure

Schedule

Execute and Report

Execute & Report

Procurement The work order initiator describes what is broken to the best of his/her ability. Is the seal leaking? The bowl cracked? Could a rod be bent? Often he will not be able to inspect the equipment personally, so how the Planner interprets this, will determine what parts he orders if any. The Planner looks at the work order and if possible inspects the equipment personally. He uses his best judgment to allocate the proper resources. This will often include internal and external materials. This is financial approval, and it includes the cost of any materials, internal or external, that are part of the plan. This is the actual purchase and receipt of materials. The received and/or issued materials constitute the first actual dollars expended on the work order. Scheduling occurs only after the necessary parts are available, not before. Sometimes new requirements for parts occur after the job has begun. And often the job must be stopped temporarily and re-scheduled pending new material receipts. Part of executing the job might be taking delivery of the parts. Where are they? At the dock perhaps? Are they arriving via FedEx? Hotshot? Continued on next page

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management

Air Liquide America, L.P.

Page 59 of 87

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Unit 2 Chapter 4. Procurement, Continued Expediting

Production Tech

Once it is understood that the entire MMP cycle is affected for better or worse by Procurement of materials, it becomes obvious that a delay in material delivery can adversely affect scheduling and execution of the job. Often this delay can have an immediate financial impact. Sometimes it is prudent to monitor the procurement process more closely. The tracking of external purchases, and management of special delivery options, to accelerate the delivery of parts necessary for the more urgent jobs, is called expediting. At Air Liquide this typically a Corporate Supply Management function. Air Liquide has no formal expediter position, per se, but the function might be executed by the initiator of the Field Direct PO or by the CSM for other PO’s. Actually, what the Expediter does for specific and urgent work orders is essentially what the Planner does, on a smaller scale, for all work orders. He takes a bonafide interest in pushing work orders through the system toward execution and completion. Expediting requires going the extra mile, getting involved with the vendors and in the delivery process as well. Note: The expediter might get involved very early in the procurement process; possibly while the work order is still in the planning stage, at the request of the Planner. Or he might have started trying to locate a specific part, long before the current one failed and the work order was written.

Goods Receipt

Goods Receipt is more than the physical arrival of ordered materials into Air Liquide possession. It is the official acknowledgement of movement from the vendor to the customer (Air Liquide), signified by electronic signature, accompanied by posting of actual costs (in this case, to the work order), at the point in which the materials physically change hands. Goods receipts and service receipts are different. Goods must be received before work commences in most cases, because goods are purchased in advance of consumption. Service receipts occur only after work has begun, because service is paid concurrent with consumption. Continued on next page

Air Liquide America, L.P.

Execute & Report

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management

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Unit 2 Chapter 4. Procurement, Continued Goods Receipt (cont’d…)

The receipt of requisitioned materials and availability of contract services, the issue of warehouse materials…These are the things that signal the end of the Procurement process. But these things do not automatically trigger scheduling. Work orders must be monitored constantly for changes. The Planner usually does this. Typically it is changes in material receipt status that makes a work order ready for Scheduling. A Planner typically would rely on special reports, which look at Purchase Orders. These reports might check only Purchase Orders linked to maintenance work orders, and they might notify the Planner only if the work order’s external material requirements are completely met by the most recent goods receipt. This allows him to focus his efforts more efficiently. Note: As stated earlier, it is the Planner’s responsibility to get the work order ready for Scheduling. Monitoring goods receipts is part of this process, and therefore part of his responsibility.

The Final Step

Once the Planner ascertains that all resources are available, he changes the status of the work order to WSCH (waiting for scheduling). This places the work order in the Scheduler’s queue, and removes it from the Planner’s realm of responsibility. This also ends the MMP Procurement functional step, paving the way for Scheduling..

Execute & Report

Production Tech

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Tech Maintenance Maintenance Coordinator/ Coordinator Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management

Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling Introduction

Execute & Report

Production Tech

The best way to gauge the maturity of a maintenance organization is by looking at the way work is scheduled. Scheduling is the one thing that makes the most difference in the efficiency of the whole maintenance execution process, and for this reason, all of the steps prior to scheduling are designed to support and facilitate the scheduling process. It is in the scheduling phase that much of the MMP effort begins to pay off, and here that the benefits become tangible (and measurable).

PL Plant Plant PL Manager Manager

OPL Plant OS Plant Manager Manager Maintenance Tech

“How often do you meet to discuss the work schedule?” The answer to this simple question speaks volumes about the maintenance department. We will address this question (and a few more) in this section.

The 5-Minute Evaluation

A quick and simple evaluation by a maintenance auditor, of any maintenance department might contain some basic questions about the maintenance budget; how many pieces of equipment are maintained; the number of employees, etc., but pretty quickly, a maintenance expert would ask pointed questions, similar to the ones below: 5-Minute Evaluation Do you have a weekly meeting to discuss the work schedule? Does operations attend? Do they participate? What is discussed? Are resources shared between plants? How is this done? How far ahead do you schedule the work? What percentage of the workload is emergency work? What percentage of the workload is planned in advance? What percentage of the workload is preventive/predictive? How much of the work is completed without interruption? When does Operations get a copy of the work schedule? (or do they?) Is permitting completed prior to scheduled start time? Continued on next page

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer RC RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued

Production Tech

Maintenance Excellence

PL PL Plant Plant Manager Manager

How will we achieve maintenance excellence? On what basis are we evaluated? Can maintenance or operations do it alone? Who defines maintenance excellence? Our partner? What criteria will they use? How do we know what they want? We manage our partner’s expectations. What does this mean? How is this accomplished? We start by understanding our partner’s expectations: • “What constitutes success?” • “ What IS a good job?” • “ How can we measure this?” The process of establishing a mutual understanding, a common definition of excellence, between our partner, and ourselves is appropriately called managing expectations (i.e. - agreeing on what constitutes a suitable outcome). It works both ways. And not understanding what our partner expects sets us both up for failure. Typically when we fail to meet expectations, the complaint is not with our technical abilities. Maintenance personnel know how to repair equipment. Operations personnel know how to remove it from service and make it safe to work on. So, when we fail, it is typically because we either don’t communicate well, or we are not responsive enough.

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

The Schedule

So once again…Why all this talk about “understanding operations’ expectations”? Where are we going with this? Answer: The Schedule “…And what’s so great about the schedule?” The Schedule is not only the key to the entire process… the main medium of communication…and the work execution road map… …It is the documented record of our partner’s expectations…the daily standard, against which our joint efforts will be compared, the tool by which our efforts will be measured, the compilation of our mutual requirements, presented clearly, prioritized appropriately and delivered well in advance.

RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued

Production Tech

The Schedule

PL PL Plant Plant Manager Manager

(Cont’d…)

The Schedule is how we communicate. It contains detailed written instructions for both operations and maintenance…in the format of choice. And it includes all maintenance needs to know about the availability of cranes, special craft requirements, special instructions…and all operations needs to know about when technicians will arrive, what needs to be prepped, when work will commence, etc. It is the process of creating the schedule that is important. It is during this process, that most of the communication between operations and maintenance takes place. It is where agreements are reached to share resources, jobs are selected, equipment is reserved, special requirements are noted, and special needs are met.

Scheduling Meeting

Let’s talk about the Scheduling Meeting for a bit. It may be as simple as the Plant Manager discussing a job with a Maintenance Technician: • • •

When will this job begin? How will it proceed? How long will it take?

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

A very formal Scheduling Meeting might include the RC Manager, the Zone Production Manager, the Maintenance Scheduler, several Plant Managers, and several Maintenance Engineers: • • • • • • • •

OPL Plant OS Plant Manager Manager

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Can I get this job on the schedule for Thursday? We’ll need scaffolding for that. I’ll make the call. What craftsmen will be required from my area? Will a crane be required? Will it be rented? Not if we move the job to Friday. Can we wait? Can this job be included with that one? Does the backlog contain other work that is nearby? Who has a coded welder?

Zone Production Manager

Maintenance Manager Continued on next page Executive Management

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Unit 2 Chapter 5. Scheduling, Continued

Production Tech

What is Scheduling?

PL PL Plant Plant Manager Manager

Just what does proper scheduling entail? Scheduling can include the efficient facilitation and coordination of the following tasks: Who Operations

Maintenance

Inventory

What’s in This For Me?

What do we hope to gain from scheduling? Well, that’s a two-part question, so it depends on whom you ask. It’s about sharing information. Some of this information is on the schedule; some is discussed in the scheduling meeting. • • • • • • •

Accountability

Results Proper equipment prepared properly Lock out / Tag out procedure initiated Permit procedure initiated Technicians arrival for work execution Lock out / Tag out procedure signed Permit procedure signed Proper tools on job Warehouse parts availability External parts received External contractors available

Information for Operations: When is the job starting? Who should we be looking for? How long will we be shut down? Are special permits required? What is required from “us”? What other equipment is affected? How are my high priority items being addressed?

• • • • • •

Information for Maintenance: What time do we show up? Who do I see for permits? How long is this expected to take? What safety precautions apply? Will the equipment be ready? Who else is working on this job?

Maintenance is accountable for work/job readiness. Operations is accountable for equipment readiness. The Schedule is the contract.

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued

Production Tech

A Look at Scheduling

PL PL Plant Plant Manager Manager

Real scheduling involves the efficient coordination of daily work, weekly work and monthly work. The goal is to look a month ahead, schedule a week ahead and commit to tomorrow’s compliance today, in writing. That means meeting daily, not to create tomorrow’s schedule, but to review and finalize the tomorrow schedule created last week, to adjust it if necessary, in light of new urgent needs, and agree to live with it. It also means actually pre-scheduling next week. This is completed and published on Thursdays at Air Liquide. The goal is a schedule; visible in advance, that not only facilitates work execution planning and coordination, but also doesn’t change…or changes very little. It means budgeting our time and money, and living within our budget. Does this sound difficult? It doesn’t mean the entire schedule is written in stone, but it does mean we adopt a different mindset. It means we stop dwelling on the urgency of today, long enough to plan a very routine tomorrow. It gets easier with continued effort.

Schedule Attainment: A Goal

Constantly looking ahead means committing not just to the work schedule, but also committing to the agreements made which are now inseparable from the schedule: equipment loans, resource allocations, material deliveries, start times, tool requirements, transportation requirements, equipment preparation, etc. The things that are cheaper with a little foresight. Thus, schedule attainment, the successful adherence to the agreed upon schedule, becomes a larger, more meaningful accomplishment, a commitment to cooperation, a monument to effort, a bonafide measurement of success.

Schedule Adherence

Adherence to a sensible schedule, and planning work in advance, has many advantages, most of which are readily apparent. In fact, the excellent results obtained from real planning and scheduling, are almost immediately apparent.

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued

Production Tech

The Schedule

PL PL Plant Plant Manager Manager

So what does this monthly / weekly / daily schedule look like? How does one go about creating a schedule four (4) weeks in advance? Where does one begin? Answer: One starts with a calendar. Notice the simple one below, depicting the components of a formal schedule. The current week (WK0) has boxes representing Monday through Friday of the current week, with the assumption that Thursday’s box represents today (notice inset). The following week begins on Monday (WK1 / Monday), and is depicted by the five boxes on the second row. Notice how each day in WK1 (next week) is pre-loaded with approximately 40% preventive maintenance and 60% normal work.

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Priority 3 - Emergency

HELP! I need it TODAY !!

Maintenance Maintenance Planner Planner

Priority 2 - Urgent

Priority 1 - Regular

< 10%

Urgent Work Reported Yesterday (by 2 pm) for Today's Schedule .

Maintenance Maintenance Scheduler Scheduler

Priority 99 - PMs

Normal Work Work Order Order Backlog Backlog

< 10%

> 40%

Maintenance Maintenance Engineer Engineer

TODAY

PMs

WK0 100%

PMs are PreLoaded (Bypassing Backlog)

WK1 100%

WK2 80%

> 40% WK3 60%

RC Manager Manager

Zone Production Manager

WK4 40%

Maintenance Manager

Continued on next page Executive Management

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Unit 2 Chapter 5. Scheduling, Continued The Schedule (Cont’d….)

Execute & Report

Production Tech

PMs were placed on the schedule immediately, bypassing the backlog, thus 40% of the schedule is known 4 weeks in advance. Normal work is also placed on the schedule well in advance, but not in the same manner. Normal work is pre-loaded more gradually, as the month progresses, with the 60% pre-load (average/approx) attained only in WK1, as a result of the weekly scheduling meeting concluded on Thursday of WK0. A portion of this 60% will be interruptible work, those jobs that are easily placed on hold. The days remain scheduled at 100% of full capacity as they approach execution day. The day before execution, some of the interruptible jobs are dropped if necessary, to accommodate urgent work. On the day of execution (WK0 / Thursday), emergency work, if it exists, must also be addressed. Again, the technicians assigned to the interruptible work are immediately reassigned to the emergency. Ideally, the majority of the schedule remains unchanged: The urgent work scheduled yesterday continues, the 40% pre-loaded PM work continues. And most of the normal work (still about 50% of the schedule) is still unchanged. Only a few jobs were cancelled, the ‘interruptible jobs’, so the bulk of the work begun was planned and scheduled in advance, and is executed according to plan.

PL PL Plant Plant Manager Manager

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

Scheduling Meeting: Inputs

As previously stated, agreements and commitments are made in the Schedule Meeting, which facilitates the creation of, and improvement upon, the schedule. And the schedule is the contract, which assures accountability of all participants. Maintenance is responsible for work/job readiness. Operations is responsible for equipment readiness. The cooperation and compromise necessary in this process is embodied and documented in the schedule itself…and it is this cooperative effort that elevates the official schedule document to prominence. Continued on next page

RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued Scheduling Meeting: Overview

Production Tech

Below is a simple depiction of the daily Scheduling Meeting. It is in this meeting that Operations and Maintenance representatives meet daily, in person or by phone, to create the Maintenance Schedule.

Resource Availability

Maint. Representative Equipment/Plant Status

PL PL Plant Plant Manager Manager

OPL Plant OS Plant Manager Manager

Ready to Work Backlog

Ops. Representative

Execute & Report

Scheduling Meeting

Maintenance Schedule

Maintenance Tech

Maintenance Commitment To Job/Work Readiness

Maintenance Coordinator/ Supervisor

Operations Commitment to Equipment Readiness

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Work Priority Maintenance Maintenance Engineer Engineer Continued on next page

RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued Scheduling Meeting: Inputs

Execute & Report

Production Tech

A lot of information is brought to this meeting. A lot of inputs are required. The preparation of each input is the key to a successful meeting. What does that mean? The chart below elaborates: Input

How is it prepared? The (Scheduling) Backlog is a list of all work orders, with those that are pre-planned, and with sufficient materials to begin the work designated as “Ready to Work”. A wellBacklog prepared backlog would be placed at each position around the table. This would be the Scheduler’s responsibility. This would also be the responsibility of the Scheduler. It is merely a list of who (name/craft) currently plans to be in Resource attendance for each area, based on vacation plans, injury, Availability sickness (known), temporary re-assignments, etc. It is stated in man-hours per craft per plant. Has proper authority to speak for his department and Operations division. Knows their concerns, production requirements, what equipment is currently not at full capacity, what work Rep(s). orders are currently being addressed, etc. Has proper authority to speak for his department and division. Know their concerns, man-power status, where Maintenance man-power is assigned, what work orders are currently Rep(s). being addressed. Knows what resources are required for each work order. Information as to the production capability of the equipment and plant. Is the equipment running? If not, is Equipment / there a spare? How critical is the equipment to the plant / Plant Status unit? If the plant / unit is running now, must it be shut down to effect the repair? How important is this work? How important is it relative to other work being discussed? If conflicts for resources Work Priority are likely to occur, they should be discussed before the meeting.

PL PL Plant Plant Manager Manager

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Zone Production Manager

Maintenance Manager

Continued on next page Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued Scheduling Meeting: Emphasis

Production Tech

First and foremost: Participation. Both operations and maintenance are represented in this meeting, and both come with the information, prepared in advance, because both are affected by the decisions made. Second: Representation. All affected areas are represented. The representatives have designated or delegated authority, and have sufficient influence within their departments that decisions and commitments can be made immediately and are honored without question. Third: Cooperation. Some work must be done, some should be done, and some can be done. But a finite amount of capacity for work exists. Period. Fourth: Focus. The meeting is about tomorrow and beyond. Discussion of today’s activities must be postponed until after the meeting.

A Key Tenet Of MMP

Execute & Report

Finally, of major importance, a key tenet of MMP must be understood: Although there is some immediate benefit to always applying the maximum amount of time, tools and talent, to the highest priority work, and at times this is necessary…sustained long-term benefits, functional and financial, are achieved by planning work in advance, adhering to an agreed upon schedule, applying intelligent and uninterrupted effort to addressing identified problems, and honoring commitments, by efficiently and consistently finishing what we start. Nowhere is it more important to guard against the tendency to slip back into reactive mode, than in the scheduling of work. So, to clarify…Just as a short-term benefit can be achieved from the wholesale re-shuffling and reallocation of manpower…to place a critical piece of equipment back on line immediately…there is also a long-term price to be paid.

PL PL Plant Plant Manager Manager

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Zone Production Manager

Continued on next page Maintenance Manager

Executive Management Air Liquide America, L.P.

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Unit 2 Chapter 5. Scheduling, Continued Scheduling Meeting: What to Expect

Execute & Report

Production Tech

But what are the ground rules here? How is the meeting conducted? Who is in charge? When and where does it occur? What is the goal? The Daily Schedule meeting occurs at the same time every day. It starts exactly on time, because not being on time means decisions are made in your absence. Things move quickly and efficiently. The Scheduler is early. He/She has passed out tomorrow’s schedules for the various areas represented, and has also furnished a manpower list. How could there be a schedule? Remember, the work has been scheduled in prior meetings. Furthermore, the PMs go directly to the schedule accounting for a significant portion of every day’s work. Operations has already handpicked and prioritized the “ready to work” (parts/tools/people available) jobs from the backlog. The Scheduler has taken his best guess within the confines of their preferences. This expedites things quite a bit too. Who else is in attendance? Coordinators, plant managers, maybe a planner or two is standing in for someone (with delegated authority), the RC manager. Typically, the meetings are bigger in the beginning...and longer. After a while, only those directly affected show up. It gets faster. Eventually, hundreds of hours of manpower allocation takes place in a very few minutes. It gets more efficient. Mostly the urgent work is discussed, because the Scheduler knows the PM and Normal work so well, there is very little to change. Maybe a job gets cancelled because the equipment can’t be shut down yet, but for the most part, a week’s worth of normal work is already laid out. The emergency work has already started, even as the work order was being created. Nothing to discuss there. So only the urgent work remains. It gets placed on the schedule. The Scheduler makes notes. Manpower is reallocated if necessary. This is kept to a minimum, for efficiency and convenience sake. An effort is made to keep people in the area where they are most comfortable and/or effective. Continued on next page

PL PL Plant Plant Manager Manager

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 72 of 87

UNIT 2, Chapter 5

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule Schedule

Unit 2 Chapter 5. Scheduling, Continued Scheduling Meeting: Confirmation vs Re-construction

Notice the “What to Expect” topic on the previous page. Things are going pretty smoothly. This is not always the case, especially in the beginning. It takes a while for people to understand the process. What was described in the previous topic was the daily Confirmation of Schedule process. Basically, everyone took one last peek and said… “Yes, what I’ve agreed to all week…is what I’ll agree to now.” Everyone works better on a schedule. And every job is executed more efficiently when it is executed according to plan. Maintenance uses some of its skilled people to plan and schedule work, and it costs wrench time. But with good scheduling, and good parts, a good plan, and well-trained technicians…they make up that time…and the actual execution process becomes much more efficient. The result is that maintenance gets more work done faster. And it lasts longer. So there are fewer breakdowns. And eventually, because of having fewer breakdowns, maintenance has time to do more proactive maintenance, and less reactive maintenance. Operations gets more uptime, and maintenance spends more time looking at things before they break.

Execute & Report

Production Tech

PL PL Plant Plant Manager Manager

OPL Plant OS Plant Manager Manager

Maintenance Tech

Maintenance Coordinator/ Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC Manager Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 73 of 87

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 6. Executing & Reporting Introduction

Maintenance Coordinator

Production Production Tech Tech

All the plans are made, parts are available, and the schedule says the work order is ready to go. Scheduled start time is 8 am tomorrow morning. What you do next depends on who you are, and where you are in the process. Once the maintenance schedule is delivered and the work execution phase begins, the maintenance coordinator gets involved in the actual execution. Specifically he/she is responsible for assigning individuals to the work orders the day before the scheduled start and insuring that the start occurs on time. The maintenance coordinator prints the work orders and is actually in charge of getting the work done. He/she tracks work progress throughout the day and provides feedback to maintenance and operations as required. It is the maintenance coordinator who initially receives the schedule and follows the jobs to completion. It may be the maintenance coordinator who updates the status of work orders in the EAM system. He also notifies the Planner if changes are needed in the plan, and is ultimately responsible for notifying the Scheduler when schedule changes are appropriate, though this notification may also come from other sources (the production technician, maintenance technician, etc.).

Production Technician

The production technician in charge of a specific equipment item will be informed of scheduled maintenance on that equipment. The weekly schedule gives him/her a forewarning of the pending repair. He is informed of the start date and start time, who (from maintenance) will participate, what will be done, how long it will take, what it will cost, etc. The final confirmation for all but emergency work is received the day before work is to begin. The production technician is responsible for knowing what product is inside the equipment, if any, and what safety precautions must be taken and what safety clothing and gear are required for handling. He is responsible for having tags hung, permits filled out, equipment properly prepared and ready at the time specified on the work order. Equipment readiness is an operations responsibility, and the production technician is the operations representative designated to act on their behalf. Continued on next page

Air Liquide America, L.P.

Execute Execute & Report Report &

PL Plant Manager OS Plant OPL Plant Manager Manager

Maintenance Maintenance Tech Tech Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor Maintenance Planner

Maintenance Scheduler

Maintenance Engineer

RC Manager

Zone Production Manager

Maintenance Manager

Executive Management

Page 74 of 87

UNIT 2, Chapter 6

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 6. Executing & Reporting, Continued Maintenance Technician

Production Production Tech

The maintenance technician is responsible for arriving at the specified location, at the designated start time, prepared to execute the work. It is his or her job to actually perform the task defined in the work order.

PL Plant Manager

The maintenance technician must review the work order in its entirety before initiating any repair. Appropriate information concerning permits, safety gear, safety clothing, special procedures, etc., are contained in the work order and on the permit. By becoming more familiar with the work order, the maintenance technician insures safer job execution. He/she will execute the work order according to standards of best practice, and will exhibit the highest standards of excellence in his/her work.

OPL Plant OS Plant Manager Manager

The maintenance technician will execute the task as per instructions and will notify operations and maintenance supervision (if appropriate) when the work is complete. Specifically, rescheduling information must reach the scheduler. The maintenance technician will provide feedback if necessary, either in the work order by entering/updating “as found” and “as left” information, failure information, long text…or by notifying the correct maintenance or operations entity directly when applicable and appropriate. Completion of a feedback form may become part of the future work execution process. This would allow the maintenance technician to update the Planner with information pertinent to future planning of the same or similar work. Maintenance Planner

Execute & Report

The Planner typically has very little to do with work execution unless his assistance is requested. When that occurs, the request is usually urgent. Sometimes new developments render the original plan worthless. Often the Planner must revise the plan as work progresses, either because some of the requirements have changed, or because the wrong parts were procured. Sometimes he must personally locate parts and arrange for their immediate procurement and delivery to the site. Continued on next page

Maintenance Maintenance Tech Tech Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor

Maintenance Planner

Maintenance Scheduler

Maintenance Engineer

RC Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 75 of 87

UNIT 2, Chapter 6

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 6. Executing & Reporting, Continued Maintenance Planner

(Cont’d…)

Production Production Tech

The Planner must be flexible. Often the Planner’s initial research, which was part of the planning process, makes him/her the most informed individual available, and the logical choice for consultation during work execution. Modification of plans after execution, based on feedback forms submitted by those executing the work, might eventually be part of Planner responsibilities. This would typically occur for more repetitious types of work, since there would be much less benefit in modifying a plan for a single, elaborate repair, unlikely to be repeated.

Maintenance Scheduler

The maintenance scheduler is not directly involved in the execution of work, but must be aware of the status of all jobs currently on the schedule, so that he/she may affect the appropriate rescheduling or canceling of jobs in the EAM system. The maintenance scheduler stays in contact with the coordinators and planners, constantly receiving input and feedback. It is the scheduler’s job to update the preliminary schedule for the following day to reflect changes necessitated by deviations from the schedule, typically caused by work execution delays, emergencies that take precedence over scheduled work, improper/inaccurate planning, manpower shortages, etc.

Continuous Improvement

Execute & Report

How do you know when you’re getting it right? Answer: You set goals for yourself. And you keep improving until you achieve your goals. Generally, you start with goals that will require persistent effort, but are achievable in the relative short term. Initially, it’s important to know that you on the right track. Establish consistency. Insist on consistent improvement. Continued on next page

PL Plant Manager

OPL Plant OS Plant Manager Manager Maintenance Maintenance Tech Tech Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor

Maintenance Planner

Maintenance Scheduler

Maintenance Engineer

RC Manager

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 76 of 87

UNIT 2, Chapter 6

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 6. Executing & Reporting, Continued Key Performance Indicators: Initial

Key Performance Indicators: Best of Class

Production Production Tech

“…Measure what you treasure…” Once you know where you stand, you begin to work on improving your performance. And when you start reaching your goals, you raise the bar. Below are some initial targets to shoot for:

Initial Performance Goals Scheduled Hrs Worked as a percentage of Total Hrs Worked. Preventive Maintenance Hrs worked as a percentage of Total Hrs Worked. * Corrective Hrs Worked as a percentage of Total Hrs Worked. * Total Emergency Hrs as a percentage of Total Hrs Worked. Total Urgent Hrs as a percentage of Total Hrs Worked. Weekly Budget Target * Planned means planned 1 week in advance.

Target > 80%

PL Plant Manager

OPL Plant OS Plant Manager Manager Maintenance Maintenance Tech Tech

> 40% > 40% < 10% < 10% +/- 10%

Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor

Maintenance Planner

But how do you know when you’re the best? Eventually, these are the Performance Goals you consistently achieve: Best in Class Performance Goals Scheduled Hrs Worked as a percentage of Total Hrs Worked. Preventive Maintenance Hrs worked as a percentage of Total Hrs Worked. * Planned Hrs Worked as a percentage of Total Hrs Worked. * (Total Hrs Emergency + Total Hrs Urgent Work) as a percentage of Total Hrs Worked. Weekly Budget Target * Planned means planned 2 weeks in advance.

Execute & Report

Target > 90%

Maintenance Scheduler

Maintenance Engineer

> 50% > 40%

RC Manager

< 10% +/- 5%

Zone Production Manager

Maintenance Manager

Executive Management Air Liquide America, L.P.

Page 77 of 87

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 7. Continuous Improvement Continuous Improvement

Production Production Tech Tech

Improving the process is everyone’s responsibility. This means we do a better job, every time we do the job. Our plans are better, our execution is better, the job costs less, and the equipment lasts longer.

PL PL Plant Plant Manager Manager

We have to stop thinking only in terms of completing the repair, and start thinking of how to make the repair effort more efficient. We must stay engaged a little longer in the process. During work order completion, for example, an important question to ask is:

OS Plant OPL Plant Manager Manager

“What do I know now, that I wish I had known when I started this job?” Continuous Improvement: Maintenance

Execute Execute & Report Report &

Noting opportunities for improvement is part of continuous improvement. It requires an interest in making things better. The chart below lists some areas where this interest might be focused: Suggested Follow Up Items to Consider: Special Tools Required Special Equipment, Scaffolding, Crafts Innovative Solutions: Using covered scaffolding for sun/weather protection Forgotten/Overlooked Items: water jugs, port-o-cans, lunch areas, lay down considerations, electric cord protection, lift plans, fuel for compressors and generators, spare parts, etc. Better Job Task Procedures Better Dollar Estimates More Realistic Lead-time for Parts/Service Procurement Technical Manual/References on hand. Contact Names and Numbers What NOT To Do: Lessons Learned Alternative Repair Methodologies Improved Troubleshooting Techniques MOC Changes Made or Recommendations Overlooked Safety Items Continued on next page

Maintenance Maintenance Tech Tech Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Zone Zone Production Production Manager Manager

Maintenance RC Manager Manager

Executive Executive Management Management Air Liquide America, L.P.

Page 78 of 87

UNIT 2, Chapter 7

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 7. Continuous Improvement, Continued Maintenance Excellence

Production Production Tech

Why so much emphasis on maintenance? Because excellence in maintenance management sets the stage for our other goals. Getting a handle on maintenance means our equipment lasts longer and is more reliable. Reliable equipment means reliable production. Maintenance process improvement is just the first step. It’s not complex. It’s very simple. It just requires discipline. Ultimately the reliability we want depends on our ability to consistently adhere to good, sound maintenance practices, the same practices observed at all exceptional maintenance organizations.

Continuous Improvement: On the Job

Execute & Report

PL PL Plant Plant Manager Manager OS Plant OPL Plant Manager Manager Maintenance Maintenance Tech Tech

Attaining excellence in maintenance management requires that we first understand what excellence requires of us. We set goals for ourselves and we attain those goals. And we raise the bar. It’s a steady process of improvement. We measure our progress, and record our measurements. And we stay the course.

Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor

In short, every time a maintenance technician must leave the job to locate a tool or a part…the opportunity for improvement exists. Wrench-time. It’s a big part of the repair. Having the needed supplies close at hand is crucial to the efficient execution of the task.

Maintenance Maintenance Scheduler Scheduler

It’s hard to imagine a surgeon leaving the patient to search for a scalpel or a bandage. Why? Because time is important to the surgeon. We’re not looking for that kind of precision. But are looking to become more efficient, because it’s our job.

Maintenance Maintenance Planner Planner

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager

Continued on next page Zone Zone Production Production Manager Manager RC Maintenance Manager Manager Executive Executive Management Management Air Liquide America, L.P.

Page 79 of 87

UNIT 2, Chapter 7

Emergency Prev. Maint. Urgent Normal

Identify & Prioritize

Plan & Estimate

Approve

Procure

Schedule

Unit 2 Chapter 7. Continuous Improvement, Continued Continuous Improvement: Reliability

The Maintenance Management Process is about laying the foundation for continuous improvement. At the start, it’s about getting maintenance right. This means getting maintenance costs down, and keeping the equipment up. And initially, we’ll start noticing some improvement in reliability. But while this is definitely a step in the right direction, it’s not the destination. As we build our PMs and plan our jobs, we amass valuable caches of information…databases, which describe our routines. We catalog and categorize. And we mature as a maintenance organization; we smooth out the bumps, streamline the processes, and optimize the procedures. We get better. That’s what it’s all about. It’s learning to work together efficiently as a team. It’s becoming the best maintenance organization possible, so that we can become the best Air Liquide possible. It’s our job. Eventually there is a point, when the numbers become more consistent, and the data becomes more reliable, and we can start making better decisions…based on those numbers…MTBF, costs per equipment, downtime per equipment, etc. We leverage that knowledge…investing our maintenance dollars and engineering resources where they can do the most good. That’s when we’ll begin to see dramatic improvements in production reliability. And that’s when the effects of maintenance done right…start being felt in the bottom line…when maintenance ceases to be a relative weakness…and starts becoming a major competitive advantage.

Execute & Report

Production Production Tech

PL PL Plant Plant Manager Manager OS Plant OPL Plant Manager Manager Maintenance Maintenance Tech Tech Maintenance Maintenance Coordinator/ Coordinator/ Supervisor Supervisor

Maintenance Maintenance Planner Planner

Maintenance Maintenance Scheduler Scheduler

Maintenance Maintenance Engineer Engineer

RC RC Manager Manager Zone Zone Production Production Manager Manager RC Maintenance Manager Manager Executive Executive Management Management Air Liquide America, L.P.

Page 80 of 87

Appendix I – A: Requisition Flowchart

Need For Maintenance Parts or Services Exists

Purchase Requisition Entered In Maximo

Requisitioner Starts Workflow Approval Process

Workflow Checks the Following: Oxy/Med Fields Complete? GL Account Valid? ACE Number Valid? Work Order Number Approved?

Is All Information Correct?

Workflow Requisition Approval Process

PR Is Approved In Maximo

PR Sent To Oracle VIA Interface

Does PR Meet Requirements for Field Direct?

NO

Air Liquide America, L.P.

YES

Requisitioner Auto Creates PO from PR In Oracle

Corporate Supply Management Creates PO from PR in Oracle

Page 81 of 87

Appendix I – B: Requisition Approval Flowchart

1. Approve (Moves Work Order Forward In Approval Process) 2. Reject (Sends Work Order Back To Planner) 3. Request More Information (Sends Work Order to Maintenance Counterpart)

APPR

WAPPR

YES

Is PR Less Than $5,000

YES

Maintnance Mgr Approves Work Order > $25,000

Air Liquide America, L.P.

RC Manager Approves PR < $25000

Maintenance Engineer Approves PR < $10000

NO

Did RC Manager Write PR? NO

NO

Did Maint Engineer Write PR?

YES

< $5000

Page 82 of 87

Appendix 1 – C: Pipeline Zone Work Order Flowchart

Work Identified

YES

Begin Work Execution Concurrent With Planning and Approval Process

Emergency? NO

CRTD Work Order Created In Work Order Tracking

Is Work Order a PM?

Plant Manager Approves

NO

YES

CRTD » PLAN

PLAN

PLAN » WAPPR

Plant Manager Changes Status to PLAN

Planner Plans The Work Order

Planner Starts Workflow

No

Yes

Plant Manger Cancels The Work Order

Workflow Pipeline Work Order Approval Process

CRTD » CAN

Normal

Urgent

APPR » WSCH

WSCH » INPRG

INPRG » TECO

TECO » COMP

COMP » CLOSE

Planner Changes Status To WSCH

Scheduler Schedulers Work Order

Coordinator/Plant Executes the Work Order and Enters Work History

Final Completion of Work Order

Work Order Closed By System Administrator

TAR Backlog WO Ready To Schedule?

Normal Backlog

YES

No

Air Liquide America, L.P.

Page 83 of 87

Appendix I – D: Pipeline Zone WO Approval Flowchart

1. Approve (Moves Work Order Forward In Approval Process) 2. Reject (Sends Work Order Back To Planner) 3. Request More Information (Sends Work Order to Maintenance Counterpart)

BUL Approves Work Order

APPR

Air Liquide America, L.P.

Planner Approves (Only If Planner Did not Start Workflow)

Zone Prod Mgr Approves Work Order

Senior VP Approves Work Order

Maintnance Mgr Approves Work Order

RC Manager Approves Work Order

Maintenance Engineer Approves Work Order

Plant Manager Approves Work Order

> $50,000

< $50,000

< $25000

< $10000

< $5000

WAPPR

Page 84 of 87

Appendix I – E: On-Site Zone WO Flowchart

Work Identified

YES

Begin Work Execution Concurrent With Planning and Approval Process

Emergency?

Create Quick Reporting Work Order

YES

Work To Be Executed By Plant?

NO

YES

Minor Maintenance?

NO

Create Work Order In Work Order Tracking

Enter Cost Estimate On Work Order

Plant Manager Starts Workflow

CRTD » PLAN

PLAN

PLAN » WAPPR

Plant Manager Changes Status to PLAN

Planner Plans The Work Order

Planner Starts Workflow

Maybe NO Call RC

CRTD Work Order Created In Work Order Tracking

Is Work Order a PM?

Plant Manager Approves

NO

YES

No

Yes

Plant Manger Cancels The Work Order

Work Executed By RC?

CRTD » CAN

Workflow Off-Pipeline Work Order Approval Process

NO Normal

Urgent

APPR » WSCH

WSCH » INPRG

INPRG » TECO

TECO » COMP

COMP » CLOSE

Planner Changes Status To WSCH

Scheduler Schedulers Work Order

Coordinator/Plant Executes the Work Order and Enters Work History

Final Completion of Work Order

Work Order Closed By System Administrator

TAR Backlog WO Ready To Schedule?

Normal Backlog

YES

No

Air Liquide America, L.P.

Page 85 of 87

Appendix I – F: On-Site WO Approval Flowchart

1. Approve (Moves Work Order Forward In Approval Process) 2. Reject (Sends Work Order Back To Planner) 3. Request More Information (Sends Work Order to Maintenance Counterpart)

BUL Approves Work Order

APPR

Air Liquide America, L.P.

Zone Prod Mgr Approves Work Order

Planner Approves (Only If Planner Did not Start Workflow)

WAPPR

Senior VP Approves Work Order

Maintnance Mgr Approves Work Order

RC Manager Approves Work Order

Maintenance Engineer Approves Work Order

Plt. Mgr. Approves (Only if PM did not start Work Order)

> $50,000

< $50,000

< $25000

< $10000

< $5000

Page 86 of 87

Notes

Air Liquide America, L.P.

Page 87 of 87