Plant and Equipment Wellness EAM Training Course Videos Session 15: Business Risk Reduction

Business risk reduction means to find the ticking risk time bombs hiding in your business before they explode

The best business risk reduction answers are those that bring sure success by design, i.e. the design itself protects you from having risks in the first place


Proactive business risk reduction needs you to spot what will cause your future disasters and fix the weaknesses in your asset management, operational and maintenance processes.


PEW/PWW EAM Course Day 3 – Reliability Creation Session 15 – Business Risk Reduction
Duration 5:13

The Problem: Machines and Equipment continue to Fail in Companies
Duration 10:41


– Prove $$$ value in reliability
– Build a system-wide solution
– Remove risks for all lifetime
– Lower stress in machine parts
– Create lasting machine health
– Team-up knowledge and skill
– Build ownership for solutions
– Standardize and systematize

Typical ‘Best Practice’ Asset Maintenance Management Methodology (but it still misses the target!)
Duration 8:26

Maintenance methodology today has progressed to the approach shown in the slide.

We identify the way equipment can fail and the risk the failure has on the business. Then we put in place appropriate methods and techniques to either prevent failure, or minimize its consequences. This requires cooperation between people in order to make sure maximum quality production is made, while also keeping machinery in top working order so that quality product can be safely and surely produced.

The balance between production and production capability is an always a moving requirement that is actively managed by the people in the organisation through the use of quality management systems and processes.

Unfortunately today’s maintenance management does not work. I can say that because production equipment continues to fail. If it did work there would be zero failures. There is something vital missing in our understanding and practice of doing maintenance. Without the missing ingredients we can never taste the success of getting zero failures.

Business System and Operating Process Design
Duration 1:09

“The process maps of your business processes, the workflow diagrams of your operating procedures and the assembly drawings for your equipment are the foundation documents for improving equipment reliability. They are used respectively to control variation in each business step, to control human error in each task, and to address and manage the limitations of each part’s materials of construction.”

First Design and Then Build the Right Processes
Duration 1:35

It is critical that designers know what the customer wants and that sufficient effort is put into clarifying and recording their needs before time and effort is put into developing a solution. If the designer is not sure what a client wants they can waste a lot of time doing the wrong thing. Delivering the quality that a customer wants is a process. Specify the attributes needed of products and work. Define how to control, assure, improve, manage and demonstrate their achievement. Script what is required and how to deliver it and then do it. Figure overviews the factors that need to be considered in designing a process to satisfy customers.

Waste is Expected and Accepted in This Process
Duration 1:55

No longer is it adequate to test quality after a job is done. That will not prevent the creation of waste, loss and failure. Those processes that test after the task or process step is complete accept as normal that waste will be created. This is not the way of the world-class organisation.

Waste is Eliminated in this ACE 3T Process
Duration 2:36

The world-class operation accepts no waste, loss or failure as normal. Such results are abnormal and must be prevented. In a process that checks that its inputs are of the correct quality, and controls its processes to tight tolerance, there is not need to check product quality as standard practice. Because they proactively controlled what happens in their operation only on-specification output is possible.

ACE operations do no allow defects and failures to enter their business to cause them lost production.

Move to ‘Preventive’ Quality Control
Duration 2:23

Historically quality control is measured at the output of a process to confirm the product is within specification. This is control after-the-fact. If the product is wrong all the effort expended on it has been wasted.

Better to apply quality control to the inputs and to the process so that they are correct and in-control. If that is done then the product will be correct automatically. This is ‘preventative’ statistical control – we stop production problems by ensuring the inputs are right and the process works correctly. The consequence is ‘right-first-time-every-time’ product.

PEW Solution: Standards and Standardisation
Duration 2:43

A critical element to successful ‘domain jumping’, is setting higher standards than are now in use, and develop the systems, skills and behaviours required to meet the new standards. There is great simplification, more control achievable and fewer defects and failures when standards are adopted in work quality and those practices are used throughout an organisation.

Effect of Standardisation on Process Results
Duration 0:56

The challenge for a business is to control variation to within those limits that produce good outcomes. If too many of its outputs are unacceptable a process produces excessive losses. Such a situation is terribly wasteful and needs to be investigated to understand the causes of the problems. A successful resolution will alter the output spread so that all products are within the specification. The output spread will change from a volatile distribution to one more stable, as shown in the top Figure . Now the vast majority of output from the process meets specification.

Build a Process that Produces Excellence
Duration 0:56

First identify what is excellent performance and set the limits on its allowable variation. If the current process cannot deliver the required results; redesign it and standardise on one way, and one way only, for the process to be done. Use process control charts to monitor the process and its variables. The process control charts help to find those special causes that prevent excellence and remove them. Make the changes and run the new process. If the new standardised process does not meet requirements after all special causes are removed, the process is not capable of doing so. Because it is a process problem preventing achievement, the process needs to be redesigned and changed to one that can deliver the necessary quality. With each running of the process a great deal of learning is gained. This learning is used to decide how to change the process to deliver improved performance. The process is again modified and run. This ‘scientific method’ of process development and improvement is repeated until the process produces the required quality results. This is how the Japanese moved their businesses up to world-class quality and cost performance.

Standardize the Work and Make it Systematic
Duration 3:17

Your Job Procedures must have only one way to do a thing – the standard way and no other way. They must be complete in detail so that there is no guess work required of its users. That does not mean that you are stuck with them the way they are presently written. Standardized Work is all about finding better, faster, cheaper ways of doing the same job. Standardized Work is making continuous improvement real. It’s about getting rid of the 7 Wastes, its about making continuous improvement ‘the way that we do things around here’.

4 Pillars of Quality Management Systems
Duration 1:06

Quality Planning
QP is setting quality objectives and specifying necessary operational processes and related resources to fulfil the quality objectives.
Two levels
– Strategic – business goals and means to reach them
– Operational – product goals and means to reach them

Planning sequence:
– Establish goals
– Identify who is impacted by the goals
– Determine needs of stakeholders relative to goals and goal priority.
– Develop products and services with the features that respond to stakeholders needs.
– Develop processes able to produce, promote and distribute the product features.
– Establish process controls and transfer the plans to operations.
– QP output is a set of detailed instructions at every necessary level of the organisation to carry out the objective.

Quality Control
“A process for maintaining standards of quality that prevents and corrects change in such standards so that the resultant output meets customer needs and expectations” – ISO9000
QC aims to prevent failure by producing success.
– Regulate performance and prevent undesirable change
– Provide predictability
– Install testing to improve accuracy in achievement
Rigorous planning and design
Confirm suitability to prevent failure
Test systems operate to specification
Continuous monitoring
Confirm in-process parameters
Prove they are within tolerance
Output verification testing
Checking staged throughout the process preferred
End-of-period reporting does not match operational change

Quality Improvement
QI involves increasing the frequency and ability to fulfil quality requirements.
Two techniques available to conduct QI:
– Continual Improvement (Kaizen in Japan)
– Step change – quantum leap

Quality Assurance
“Part of quality management focused on providing confidence that quality requirements will be fulfilled” – ISO9000

QA provides confidence that quality requirements will be fulfilled.
It is used by people not in positions to oversee the operations themselves, typically managers and customers.
Does not control quality, only establishes the extent that quality will be, is being, or has been controlled.
They are post-event activities to build confidence in the performance of the operation –
– Create proof within, as part of, the process that can be handed to people to prove compliance and offer assurance
– Provide reliable information that testifies to the accuracy and validity of an event or product

Components and Equipment Form a Series
Duration 4:33

We have built our machines as series systems of parts. In the bearing and shaft arrangement from an electric motor, we can follow the series – shaft, seal, nut and washer, inner race, roller, outer race, housing, and so on. By having a series configuration we have created a high chance of motor failure anytime one of its parts fail.

Redraw as a Process Flow Diagram, Size DAFT Costs and Risks, Develop Appropriate Mitigations
Duration 0:44

A Maintenance Work Planning Process Flowchart | Redraw as a Process Flow Diagram, Size DAFT Costs and Risks, Develop Appropriate Mitigations
Duration 0:25

Redraw as a Process Flow Diagram, Size DAFT Costs and Risks, Develop Appropriate Mitigations
Duration 1:12

What is Wrong with this Maintenance Job Plan?
Duration 2:05

Redraw as a Process Flow Diagram, Size DaFT Costs and Risks, Develop Appropriate Mitigations | Example 2 of ACE 3T Procedure (Conveyor Pulley)
Duration 8:40

Answer to a Question about ACE 3T (Target – Tolerance – Test) Procedures
Duration 6:59

Example ACE 3T (Target-Tolerance-Test) Procedure with Reliability Standards: Machine performance is totally dependent on human beings. To address the problem of human error causing equipment failure, an Accuracy Controlled Enterprise sets best practice quality standards and uses 3T Target-Tolerance-Test work task quality control that assures high quality workmanship for high reliability results. Their work procedures are standardised so everyone follows the same methods to produce the same results, their training teaches people how to do craftsmanship work that creates outstandingly reliable plant and machinery. They create the reliability they want and as a result achieve operational excellence.
Job Plans do not deliver job quality; for that you need detailed Job Procedures and Proof Tests
Duration 0:48

It is very unlikely that a person will get the job right if they are not given a detailed procedure with the right information and engineering measurements they need at every point throughout the job.

In the course book is the example accuracy controlled enterprise (ACE) procedure shown on the slide for a 16-step job plan to replace the roller bearings in a conveyor pulley plummer block. The slide shows you the 75-task job procedure that is needed for the 16-step job plan. Without the job procedure the people doing the work must count on their memory of how to do each job plan step.


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