Reliability - Continuity of Operations

A stable, reliable plant is the largest revenue source. A reliable high-cost plant will generate more revenue than a low-cost plant with multiple outages. The on-stream factor is a benchmark of reliability. Industry average is 97%, but the top quartile approaches 100%. This three percent in- creased production is a significant difference in revenue.

Operations Group is the first part of reliability.

A. Best in-class operation procedures need to be developed. Of the operational procedures reviewed by KLM Technology Group most would rate as poor and do not meet OSHA minimum standards or OEI / KLM Technolgy Group best practices. Most operation procedures are not as very comprehensive and many operation procedures reviewed are only a few pages in length.

B. The risk of not developing best in-class operation procedures is poor operator training based on existing substandard procedures. OEI / KLM Technology Group can provide senior consultants to assist with building best in-class operating procedures and then assist with operations training.

C. Verifying operation procedures were followed is key. If you have traveled in an airplane you have most likely heard the term “Arm Doors and Cross Check.” The “cross-check” part of this operational procedure is particularly important because it verifies that the doors were armed. There are several ways operating procedures can be verified as followed such as a check list or an independent set of eyes to verify the procedure was followed, like in the airplane.

D. Incorporating any near misses or actual incidents into the operating procedures allows companies to correct errors that were made going forward. Hiding near misses or team management flaws does not fix the issue and prevent future incidents.

Maintenance Group is the second part of operational reliability.

If you survey any group of maintenance managers, they will acknowledge a large percentage of maintenance cost is caused by misoperation. A way to reduce your maintenance cost is to improve your operations group. Reliability of the Operations Group has a cost, but this cost can be offset by lower maintenance and lower insurance rates.

 

A. Best in-class maintenance procedures need to be developed. Most of the companies that we have reviewed do not have codified maintenance procedures. Instead they rely on equipment data books as their maintenance procedures. I would rate this as poor and they do not meet OSHA minimum standards or best in class practices.

B. The challenge of not codifying good maintenance procedures it that the maintenance training is based on your existing procedures. Without good procedures one cannot have good technician training.

C. Verifying operation procedures were followed is key. If you have traveled in an airplane you have most likely heard the term “Arm Doors and Cross Check.” The “cross-check” part of this operational procedure is particularly important because it verifies that the doors were armed. There are several ways operating procedures can be verified as followed such as a check list or an independent set of eyes to verify the procedure was followed, like in the airplane.

D. Incorporating any near misses or actual incidents into the operating procedures allows companies to correct errors that were made going forward. Hiding near misses or team management flaws does not fix the issue and prevent future incidents.