ARE YOUR WORK PROCESSES GIVING YOU THE RESULTS YOU NEED?

Work processes assessed by Caravel Solutions provide structure to the organization by providing task descriptions, responsibilities and expectations for key roles, describing critical communication and information handoffs and providing metrics to track performance of work efforts.

Work processes provide structure to the organization by providing task descriptions, responsibilities and expectations for key roles, describing critical communication and information handoffs and providing metrics to track performance of work efforts. When used properly, they create value by ensuring that members of the organization understand their roles and tasks, have the tools and enablers to execute them efficiently and effectively and do not duplicate efforts.

But what if activities in the field are not aligning with the work process steps? Then it is likely somewhere in the organization work efforts are being either missed or duplicated and communication/information is being missed. The question is, what problems are being caused that will adversely impact the goals and metrics for the work process?

Typical issues for the maintenance work processes include:

  • Increase in emergency work
  • Fewer quality work requests generated
  • Reduction in the quality of work order plans
  • Decrease in equipment ready for maintenance work
  • Reduced wrench time
  • Increase in repeat work

Many things can happen to derail effectiveness of the work processes. Caravel Solutions can help you and your team conduct a quick assessment to determine the health of your work processes. We can assist with the identification of two or three key gaps that will bring work process performance back to a level that helps restore the overall economic effectiveness of your facility and achieve the desired results. And we will coach and mentor your team to ensure they understand how to sustain the needed performance.

If you believe your team needs assistance tuning up your work processes, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

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WORK PROCESS ROLE CERTIFICATION THROUGH THE OPEX ACADEMY

OpEx Academy Work Process Certification

Effective work processes and execution of key work process roles play a vital role in sustaining a high level of equipment uptime for the profitability of manufacturing plants. As discussed in our recent series of blogs on Asset Utilization, one of the foundational elements for maintaining equipment uptime is work processes to standardize maintenance and reliability efforts. We also discussed the importance of the execution of the roles and elements within the work processes.

If work process and role training were not robust during the transition of responsibilities from the original operators, gatekeepers, planners, schedulers and kitters, then it is likely that some or most of the cadence of the maintenance work process has been lost. One effective way to bridge this transitional gap is to certify the current incumbents of these roles.

Work Process Role Certification Through the OpEx Academy

Caravel Solutions offers certification for these key maintenance work process roles. Our certification program consists of classroom, in-field training and coaching to educate your employees on the responsibilities, expectations and enablers for the roles and the value created for the organization. We also cover key daily tasks, tools and procedures, and metrics for sustainable performance.

Most courses tend to provide certification only based on competency attained in classroom education. The certification program provided by Caravel Solutions applies real world scenarios in real world environments. Certification is completed only after students demonstrate knowledge of key concepts in actual performance of the role to ensure true understanding and application of the learnings.

If your company can benefit from certification in these areas, contact us at [email protected]. We can work with you to provide skilled and knowledgeable trainers/coaches, who have many years of experience in the work processes and in the manufacturing roles of concern to you, who can quickly bring your employees up to high performance.

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ASSET UTILIZATION – IN SUMMARY

Asset Utilization Approach Caravel Solutions

Asset Utilization Approach Summarized

What do rules of thumb metrics, maximum achievable capability (MAC), run time analytics – scheduled and unscheduled downtime, manufacturing opportunity index (MOI) and debottlenecking have in common? Two things: (1) Each topic is about asset utilization, and (2) each has been recently covered in a series of articles provided by Caravel Solutions to help manufacturing plants understand how to find the best plan of action to ensure the greatest cost performance (ROI).

Asset Utilization Rules of Thumb Metrics

#1 – Commodity operations are not likely to be profitable much below 80% asset utilization

#2 – Specialty operations are not likely to be profitable much below 70% asset utilization… read more

Maximum Achievable Capability (MAC)

A review of historical operating data should be available to calculate the current MAC for the plant. By evaluating factors that affect MAC, opportunities to improve performance will be revealed. Examples include:

How many times MAC operation has been achieved… read more

Run Time Analytics – Scheduled and Unscheduled Downtime

The first step is a review of the historical data on downtime. For scheduled downtime, the following factors should be evaluated:

  • Frequency of scheduled downtime
  • Key drivers for the frequency
  • Reasons for the scheduled work – time based, condition based, EHS risk management… read more

Manufacturing Opportunity Index (MOI)

The expansion of traditional asset utilization calculations provides a more robust picture of how well the facility is running and how much additional production may be obtained from existing assets. Caravel Solutions’ unique analysis, called Manufacturing Opportunity Index (MOI) … read more

What Is Debottlenecking?

Debottlenecking is the process of identifying and removing obstacles that prevent a process from becoming more efficient. You can also think of it as the component… read more

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

PART 5 – DEBOTTLENECKING – IT’S TIME FOR ACTION

Bottlenecking - Asset Utilization

Debottlenecking – did you know that the inspiration for the term debottlenecking came from the original glass Coca-Cola bottle, which had a very narrow neck that constrained the flow of the cola when poured? In the last Caravel asset utilization approach blog, Part 4, we focused Caravel Solutions’ unique approach to asset utilization, called Manufacturing Opportunity Index (MOI), which includes non-traditional factors that also affect asset utilization. So now it’s time to talk about using information from the MOI analysis to take action.

What Is Debottlenecking?

Debottlenecking is the process of identifying and removing obstacles that prevent a process from becoming more efficient. You can also think of it as the component of a process that is slower than everything that depends on it.

An important benefit of the Caravel MOI approach is the structured identification and resolution of constraints that impact profitability. In addition to directly addressing such categories as run time, run rate, yield and quality, opportunities are also identified to increase production when it increases profitability. The elimination of these physical constraints is debottlenecking.

To remain profitable in today’s highly competitive business world, continuous improvement is a necessity. The Caravel MOI process of continuously evaluating asset utilization provides a flexible yet structured system to achieve sustained continuous improvement. The Caravel approach focuses efforts on the biggest improvements first. By finding the rate-limiting steps in a facility and correcting them, debottlenecking allows manufacturing facilities to significantly extend the useful life by making the site more flexible and efficient.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

Caravel Solutions on LinkedIn

Source:  Approaches to Debottlenecking and Process Optimization by Rick Johnston, posted Tuesday, May 1, 2012 at  http://bit.ly/bioprocess

 

PART 4 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH – UPDATE

Manufacturing Opportunity Index (MOI)[Update published June 13, 2017] This article talks about a unique analysis called Manufacturing Opportunity Index (MOI). In the last Caravel asset utilization approach blog, Part 3, we focused on the run time component of asset availability. Based on our experience in numerous different industries, there are other factors that can also affect asset utilization.

The expansion of traditional asset utilization calculations provides a more robust picture of how well the facility is running and how much additional production may be obtained from existing assets. Caravel Solutions’ unique analysis, called Manufacturing Opportunity Index (MOI), utilizes these factors and places them on a similar profitability improvement scale as asset utilization.

Manufacturing Opportunity Index (MOI) Categories:

  • Compliance events – resulting from running at too high or too low operating rates, resulting from downtime events, permit limitations or changes, long term business impact
  • Quality – includes shutdown and startup off quality, meeting quality specifications through production blending, exceeding quality specifications, rerunning off-specification products or intermediates
  • Yield – changes to feedstock, changes to product mix, operation of intermediate equipment, recycle, waste
  • Fixed costs – impact of reliability on fixed costs over time, impact of downtime and repairs, etc.
  • Variable margins – variations due to yield, energy, raw materials availability and quality, high or low margins at the time of downtime events, seasonality
  • Energy effectiveness – reliability of sources, energy used per unit of production

SEE ALSO – Caravel Solutions Blog – Manufacturing Performance Optimization

The MOI process typically identifies numerous opportunities to increase profitability associated with run rate, run time and/or the additional MOI factors such as yield or quality. Consideration of these additional categories in conjunction with asset utilization gives a more complete picture of the improvement opportunities for a facility or system.

All opportunities should be captured and prioritized based on their impact to achieving strategic and tactical facility and business goals. Knowing that there are other improvement initiatives likely underway, it is critical not to focus on more than 2 or 3 key opportunities for asset utilization to increase profitability of the business and ensure successful implementation.

For each key opportunity identified, the next step is to determine, in as much detail as is warranted, WHY this opportunity exists and to explore ways to allow the organization to institute changes to capture the specific opportunity. As the organization moves forward in capturing the key opportunities, other opportunities will be identified and move into key focus themselves.

To reiterate a CRITICAL POINT – focus on too many opportunities dilutes the attention given to each and typically leads to reduced speed of opportunity capture or worse, failure to effectively execute.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

Caravel Solutions on LinkedIn

PART 4 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH

Asset Utilization Manufacturing Opportunity Index (MOI)

A unique analysis called Manufacturing Opportunity Index (MOI) is the next approach we discuss. In the last Caravel asset utilization approach blog, Part 3, we focused on the run time component of asset availability. Based on our experience in a number of different industries, there are other factors that can also affect asset utilization.

The expansion of traditional asset utilization calculations provides a more robust picture of how well the facility is running and how much additional production may be obtained from existing assets. Caravel Solutions’ unique analysis, called Manufacturing Opportunity Index (MOI), utilizes these factors and places them on a similar profitability improvement scale as asset utilization.

Categories for Manufacturing Opportunity Index (MOI)

  • Compliance events – resulting from running at too high or too low operating rates, resulting from downtime events, permit limitations or changes, long term business impact
  • Quality – includes shutdown and startup off quality, meeting quality specifications through production blending, exceeding quality specifications, rerunning off-specification products or intermediates
  • Yield – changes to feedstock, changes to product mix, operation of intermediate equipment, recycle, waste
  • Fixed costs – impact of reliability on fixed costs over time, impact of downtime and repairs, etc.
  • Variable margins – variations due to yield, energy, raw materials availability and quality, high or low margins at the time of downtime events, seasonality
  • Energy effectiveness – reliability of sources, energy used per unit of production

SEE ALSO – Caravel Solutions Blog – Manufacturing Performance Optimization

Consideration of these additional categories in conjunction with asset utilization gives a more complete picture of the improvement opportunities in a given facility or system. This allows identification of typically three to five KEY opportunities to increase profitability of the business.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

Caravel in the News on LinkedIn

 

 

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.
By | 2017-05-24T16:13:46+00:00 May 24th, 2017|Categories: Asset Utilization, MPO - Manufacturing Performance Optimization|Tags: , , , |Comments Off on PART 4 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH

PART 3 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH

Run time analysisIn the last Caravel asset utilization approach blog, Part 2, we focused on the run rate component of asset availability. The next step in the process is to analyze RUN TIME information, diving as deeply as relevant data exists.

Run Time Analytics – Scheduled and Unscheduled Downtime

The first step is a review of the historical data on downtime. For scheduled downtime, the following factors should be evaluated:

  • Frequency of scheduled downtime
  • Key drivers for the frequency
  • Reasons for the scheduled work – time based, condition based, EHS risk management
  • Opportunities for shortening the duration
  • Opportunities for lengthening the interval between outages
  • Level of pre-planning
  • Management of scope
  • Choice of times for outages – high or low demand, high or low margin
  • External resources required
  • Opportunities for reducing startup losses

Key factors for unscheduled downtime include:

  • Frequency of failures of critical equipment
  • Duration of repairs needed to get facility back on line
  • Causes for downtime – controllable or uncontrollable
  • Impact on profitability – shutdown and startup losses, customer requirements
  • Maintenance costs, overtime costs, shutdown and startup costs
  • Impact on environmental, health and safety – risk management

Analysis of the factors impacting scheduled downtime will reveal opportunities to improve the scheduling, preparation, execution, cost impact and risk management associated with planned downtime events.

Analysis of the factors impacting unscheduled downtime often reveal opportunities to focus on key causes to reduce or eliminate them, as well as improve preparedness for future events to minimize the length of the unscheduled outage.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

PART 2 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH

run rate analysis for maximum achievable capability

In the last Caravel asset utilization approach blog, Part 1, we focused on some key rules of thumb metrics as a starting point for what good looks like. The first step in the process is to analyze RUN RATE information, diving as deeply as relevant data exists.

Maximum Achievable Capability (MAC)

A review of historical operating data should be available to calculate the current MAC for the plant. By evaluating factors that affect MAC, opportunities to improve performance will be revealed. Examples include:

  • How many times MAC operation has been achieved
  • Conditions in the plant at the time MAC operation was achieved
  • % of MAC achieved over the past two to three years
  • Stability of operation at MAC operating rates
  • Impact of MAC on reliability
  • Impact of compliance constraints on MAC

By evaluating the factors that affect run rate versus MAC, opportunities to increase the run rate should be revealed. Impacting causes could include:

  • Raw materials – availability and quality
  • Operations personnel capability
  • Reliability of equipment that causes slow backs rather than down time
  • Planning and logistics – includes inventory constraints
  • Seasonality
  • Complacency
  • Production trials
  • Market conditions

A similar process is conducted to determine the MAC for all product lines. Sometimes it is assumed that sufficient data is not available for this level of detail, but an analysis should be conducted to validate or refute that assumption.

SEE ALSO – Caravel Solutions Blog Asset Utilization Part 2 – Focusing on Losses

The deeper the run rate analysis is performed, the more opportunities for improvement that are revealed. That said, even high level run rate analysis generally identifies one or two key opportunities. Many of the opportunities to improve run rate performance are relatively low cost to implement, requiring little to no capital investment.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

PART 1– CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH

Asset Utilization Approach

Caravel Solutions uses a modified asset utilization concept to evaluate the overall economic effectiveness of operating facilities. The heart of the analysis is to determine overall asset utilization, then adjust based on key modifying factors. Following the analysis, Caravel typically provides three to five key improvement opportunities with specific options to capture those opportunities.

Remember that asset utilization is a combination of how much is produced per time period when the facility is running (run rate) and how often the facility runs (run time).

Asset Utilization Rules of Thumb Metrics:

  • #1 – Commodity operations are not likely to be profitable much below 80% asset utilization
  • #2 – Specialty operations are not likely to be profitable much below 70% asset utilization
  • #3 – First quartile run rate performance is 96% or higher depending on the industry
  • #4 – First quartile run time performance is 98% or higher depending on the industry
  • #5 – First quartile asset utilization is typically around 94% depending on the industry

We are frequently asked why profitability drops so quickly with asset utilization? Although other factors come into play, it is primarily due to fixed costs being spread over too few units of production.

Caravel Solutions takes into account other factors that have been shown through experience to impact facility profitability and often provide opportunities for significant improvement. More about these other factors in an upcoming post.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

 

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.
By | 2017-05-16T03:32:35+00:00 May 11th, 2017|Categories: Asset Utilization, Optimize Yield and Quality|Comments Off on PART 1– CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH

ASSET UTILIZATION PART 3 – USING THE INFORMATION FROM THE ASSET UTILIZATION PROCESS

asset utilization process

In the previous blog, Asset Utilization Part 2, we focused on the types of production losses that are typical for manufacturing facilities and why it is important to categorize losses properly. At the plant level, it is essential to ensure that the root cause(s) is minimized or eliminated. At the business level, it is essential to ensure that the right investment of time and resources is made in the right places.

It is not possible to attack all the problems that occur relative to production losses. Once the asset utilization process is in place and working, we can determine where production losses were found and attribute each loss to an identified cause. The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes. The information from the asset utilization process can provide the 20% of the production loss problems that, if resolved, will return 80% of the value.

Advantages of Examining Root Cause Analyses in the Asset Utilization Process

So, if market demand is greater than supply, we will know if we need to invest in additional capacity or if we have enough opportunity to unlock available capacity through our reliability improvement efforts. We will know what the lost profit opportunity is, which will tell us where to invest our resources and capital. And we will learn how good our equipment standards are, as we see what types of equipment continue to fail.

Unlike some other reliability improvement efforts that fail to demonstrate financial results, the asset utilization process focuses on eliminating the most impactful causes of production losses, which is one of the most cost effective means of improving plant profitability.

If you believe your team needs assistance building or using an asset utilization process, contact us at [email protected]. We can work with you to identify options and an effective path forward and, support you during implementation.

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Source: “Asset Utilization: A Metric for Focusing Reliability Efforts” by Richard Ellis of The RE Group, presented at the Seventh International Conference on Process Plant Reliability, October 1998.

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.
By | 2017-05-09T13:33:30+00:00 May 9th, 2017|Categories: Asset Utilization, Root Cause Analysis|Comments Off on ASSET UTILIZATION PART 3 – USING THE INFORMATION FROM THE ASSET UTILIZATION PROCESS