Tools for the revision of a maintenance
strategy for an explosives manufacturing
plant, using Asset Management principles
A.B. Louw
20495390
Dissertation submitted in partial fulfillment of the requirements for the degree Master of
Engineering at the Potchefstroom Campus of the North-West University
Supervisor:  Prof. J.H. Wichers
August 2009
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 2 of 2
I. CANDIDATE'S DECLARATION
I hereby certify that the work which is being presented in the dissertation entitled “Tools for the
revision of a maintenance strategy for an explosives manufacturing plant, using asset
management principles” in partial fulfilment of the requirements for the award for the degree M.
(Eng) in Development and Management at the NORTH WEST UNIVERSITY is an authentic
record of my own work carried out during the period from January 2006 to August 2009, under
the supervision of Prof. J.H. Wichers. This dissertation has not been submitted by me to any
other University / Institute for the award of the degree M (Eng) in Development and
Management.
__________________
A.B. Louw
20495390
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 3 of 3
II. ACKNOWLEDGEMENTS
To my heavenly Father who gave me the privilege to do research and to use and develop the
wonderful gift of human intelligence and His love for His creations.
I would also like to express my gratitude to the following persons and organizations for their
contributions towards the success of this dissertation:
· My wife, kids and uncle for their love, support, motivation and understanding while
completing this study.
· SASOL NITRO for the necessary funds to complete this study.
· SASOL NITRO explosives division for the opportunity to conduct interviews at the
Sasolburg operation.
· My promoter, Prof. J.H. Wichers for his guidance, advice and support during my
studies.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 4 of 4
III. ABSTRACT
The research topic is: Tools for the revision of a maintenance strategy for an explosives
manufacturing plant, using asset management principles. This research has specific reference
to the SASOL Prillan plant based in SASOL, Sasolburg. The purpose of this research is to
identify tools for the revision of a maintenance strategy for an explosives manufacturing plant,
using asset management principles. These tools must be aimed to increase the proactive work
capacity index, Figure 3, and to identify and/or develop tools that can be used by the
engineering team of this explosives manufacturing plant to increase equipment reliability and
performance. In this research assets include people. The meaning and application of asset
management principles were researched and the tools needed to combine existing efforts and
future needs are discussed. The human element to ensure the successful implementation of an
asset management culture was researched and attributes of leaders and a change model is
presented. This research was done into the wider engineering management discipline and not
only maintenance.
The method used to gather data was by means of interviews of a sample group within this
organization. As this manufacturing unit makes use of subject matter experts, these support
functions and plant personnel that were not interviewed, were issued with questionnaires to
ensure that the sample group is a fair representation of the total manufacturing facility. To obtain
a holistic view of potential shortcomings within the current maintenance strategy, all disciplines
and levels within this operation were interviewed and commonalities of various asset
management models were determined and used to define existing problem areas. This data
was used to determine statistical correlations. The case study presented in Chapter 1 indicates
that there is a case for change that can improve the proactive work capacity index of the
engineering team. The results of this research confirm that there is in fact a real requirement to
increase spares accuracy, improve on technical training as well as a need to establish visual
performance indicators (dashboard) to measure overall equipment efficiency with the goal to
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 5 of 5
increase equipment reliability and performance.  The technical training referred to in this
research reflects on training of people on equipment after investment in new technology. The
current spares holding strategy is lacking equipment description accuracy.
Furthermore, it is recommended that the implementation of career paths and development plans
for individuals must be developed to create an environment of learning. The use of user status
information captured on the computerized maintenance management system (SAP R/3) can
add to the management of works orders and indicate where the focus must be to complete
overdue work orders. Open work orders should be used to manage expenditure, to measure
planning efficiency and to manage the cash flow of the business. The use of overall equipment
efficiency and engineering efficiency measures is recommended and must be visually displayed
on a “dashboard”. It was recommended that the engineering and operations personnel of this
manufacturing plant be trained in asset management principles and that balanced scorecards
are developed to ensure that the strategies of the various departments are aligned with the
business strategy.
Diagram 1 best illustrates the thinking and process flow of this research. The flow diagram
shows five distinct stages and the appropriate objectives and/ or elements that were considered.
The dissertation is also structured in this manner.
All abbreviations, acronyms and definitions used in this document were listed in APPENDIX B
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 6 of 6
DIAGRAM 1 – Dissertation Thinking Process Flow Diagram
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 7 of 7
TABLE OF CONTENT
CHAPTER 1 - PROBLEM STATEMENT AND INTRODUCTION ........................................... 11
1.1 Purpose and Chapter Outline .................................................................................... 11
1.2 Manufacturing Process and Plant History .................................................................. 11
1.3 Products of the Plant ................................................................................................. 14
1.4 Problem Statement ................................................................................................... 15
1.5 Purpose of this Research .......................................................................................... 15
1.7 Specific Deliverables ................................................................................................. 17
1.8 Chapter Summary ..................................................................................................... 18
CHAPTER 2 - LITERATURE REVIEW .................................................................................. 19
2.1 Purpose and Chapter Outline .................................................................................... 19
    2.2     Case Study…………………………………………………………………………………   20
2.3 Asset Management ................................................................................................... 25
2.4 Asset Management Models ....................................................................................... 26
2.5 Maintenance Strategies............................................................................................. 31
2.5.1 Breakdown (Reactive) maintenance .................................................................. 32
2.5.2 Preventive Maintenance .................................................................................... 32
2.5.3 Predictive (Condition based) Maintenance ........................................................ 33
2.5.4 Proactive maintenance ...................................................................................... 34
2.6 Reliability Centered Maintenance (RCM) .................................................................. 36
2.7 Overall Equipment Efficiency .................................................................................... 38
2.8 Maintenance ratios .................................................................................................... 41
2.8.1 Maintenance material cost as % of total sales ................................................... 41
2.8.2 Maintenance cost as % of total sales ................................................................. 41
2.8.3 Maintenance labour cost as % of total maintenance cost .................................. 41
2.9 Planning and materials management ........................................................................ 42
2.9.1 Work identification ............................................................................................. 42
2.9.2 Failure analysis ................................................................................................. 42
2.9.3 Prioritizing ......................................................................................................... 43
2.10 Maintenance Planning and Execution ....................................................................... 44
2.10.1 Percentage Emergency (Priority1) Work Orders ................................................ 46
2.10.2 Percentage Urgent (Priority 2) Work Orders ...................................................... 46
2.10.3 Percentage Schedule Compliance (Hours) ........................................................ 46
2.10.4 Capacity Planning (% Schedule Loading – Hours) ............................................ 47
2.10.5 Backlog in Crew Weeks ..................................................................................... 47
2.10.6 Preventive Maintenance Schedule Compliance ................................................. 47
2.11 Work Execution Review ............................................................................................ 49
2.12 User Status Management.......................................................................................... 49
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 8 of 8
2.13 Balanced Scorecard .................................................................................................. 53
2.14 Materials Management .............................................................................................. 54
2.14.1 Visual Control .................................................................................................... 55
2.14.2 Vendor Managed Inventory/Vendor Out Stock................................................... 55
2.14.3 Consignment Stock ........................................................................................... 55
2.14.4 Smart Systems .................................................................................................. 55
2.15 Engineering Workforce .............................................................................................. 56
2.16 Change Management ................................................................................................ 61
2.17 Chapter Summary ..................................................................................................... 63
CHAPTER 3 - EXPERIMENTAL WORK ................................................................................ 65
3.1 Purpose and Chapter Outline .................................................................................... 65
3.2 Study design - Target Population and Study Sample ................................................ 65
3.3 Interviews .................................................................................................................. 66
3.4 Interview Questions: .................................................................................................. 67
3.5 Raw Data Collected .................................................................................................. 68
3.5.1 Respondent #1 – Production manager .............................................................. 68
3.5.2 Respondent #2 – Engineering manager ............................................................ 69
3.5.3 Respondent #3 – Maintenance artisan .............................................................. 69
3.5.4 Respondent #4 – Production operator ............................................................... 70
3.5.5 Respondent #5 – Maintenance operator ............................................................ 71
3.6 Questionnaire population and justification ................................................................. 77
3.6.1 Validation of questionnaire……………………………………………………………73
        3.6.2 Questionnaire…………………………………………………………………………..77
3.7 Data analysis of Questionnaire.................................................................................. 78
3.7.1 Organizational Groups....................................................................................... 78
3.7.2 Correlation ......................................................................................................... 82
3.8 Chapter Summary ..................................................................................................... 85
CHAPTER 4 - CONCLUSIONS AND RECOMMENDATIONS ............................................... 87
4.1 Conclusion ................................................................................................................ 87
4.2 Recommendations .................................................................................................... 89
4.3 Verification of recommendations ............................................................................... 93
4.4 Validation of results ................................................................................................... 95
4.5 Research value ......................................................................................................... 96
4.6 Achievements and Shortcomings .............................................................................. 96
4.7 Future Research ....................................................................................................... 97
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 9 of 9
APPENDIX A – References …………………………………………………….……………………98
APPENDIX B – Abbreviations, Acronyms and Definitions …………………………………...…..101
LIST OF FIGURES
Figure 1 - SAMI Asset Healthcare Triangle………………………………………………………….20
Figure 2 - Current proactive work capacity index comparison to world class............................. 22
Figure 3 - DILO on mechanical artisan, Explosives manufacturing plant, 2005…………............23
Figure 4 - Swiss cheese model ................................................................................................. 24
Figure 5 – Asset Management Components ............................................................................. 27
Figure 6 - Process flow of the asset management model.......................................................... 30
Figure 7 - Asset management enhancing process .................................................................... 30
Figure 8 - Cost advantages of maintenance types .................................................................... 35
Figure 9 - RCM decision diagram ............................................................................................. 37
Figure 10 - Components of Overall Equipment Efficiency (OEE) .............................................. 39
Figure 11 - Graphical representation of engineering performance indicators for the Prillan
explosives manufacturing plant, week 23 to week 30, 2007 ...................................................... 48
Figure 12 - Overdue open work orders for planner group A08 on 2008-08-13 .......................... 51
Figure 13 - User status for overdue open work orders for planner group A08 on 2008-08-13 ... 51
Figure 14 - Supplier detail and rand value for overdue open work orders for planner group A08
on 2008-08-13 .......................................................................................................................... 52
Figure 15 - Model of Herzbergs two-factor theory ..................................................................... 58
Figure 16 - Phases in the Change Process .............................................................................. 61
Figure 17 - Change Management Model .................................................................................. 62
Figure 18 - Production Team .................................................................................................... 78
Figure 19 - Engineering Team .................................................................................................. 78
Figure 20 - Engineering Support Team (Turbo Services) .......................................................... 78
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 10 of 10
LIST OF GRAPHS
Graph 1 - Graphical representation of questionnaire response ................................................. 81
Graph 2 - Statistical correlation to training and development .................................................... 85
LIST OF TABLES
Table 1 - Attributes for a good/great maintenance supervisor ................................................... 60
Table 2 - Interview summary, focus areas to establish an asset management culture .............. 72
Table 3 - Questionnaire and response per question ................................................................. 77
Table 4 - Summary of Response to Questionnaires.................................................................. 80
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 11 of 11
CHAPTER 1 - PROBLEM STATEMENT AND INTRODUCTION
1.1 Purpose and Chapter Outline
The purpose of this chapter is to define the problem and the required outcome of this study. It
has specific reference to the need of a “dashboard” to measure and evaluate plant and
engineering activities effectiveness. The result of this research must be to enable the
engineering team to increase the proactive work capacity index of this plant and to provide tools
to achieve this outcome. The overall and specific objectives of this research are defined in this
chapter. This research will identify either existing tools or tools that can be developed that can
be used to revise the existing maintenance strategy and measure the overall equipment
efficiency. This chapter describes the manufacturing process and plant history and summarize
the thinking process of the researcher. A case study on asset healthcare is included (SAMI Inc,
2005, Prillan Explosives Plant Asset Healthcare Case Study).
1.2 Manufacturing Process and Plant History
The P.P.A.N. (Porous Prilled Ammonium Nitrate) plant in Sasolburg produces 800 metric tons
per day, low-density ammonium nitrate, known as explosive-grade. It is mainly used in the
manufacturing process of various types of explosives. This grade differs from high-density
ammonium nitrate, used as fertilizer, mainly because of higher porosity characteristics.
The manufacturing capacity of the existing manufacturing plant situated in Sasolburg, was
increased during its lifetime from 220t/day to 800t/day to maintain profitability and to
successfully compete against international and local manufacturers ( R. Wigget, 10 October
2003, Board meeting).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 12 of 12
The 90% ammonium nitrate solution supplied to the PPAN plant from a liquid storage facility
together with off-size product and ammonium nitrate solution from the scrubbing system are
mixed in ammonium nitrate feeding and dissolving tanks by using an agitator. The tank is
equipped with a steam coil to provide dissolution heat to enhance the mixing process. From the
ammonium nitrate feeding and dissolving tanks the ammonium nitrate solution is pumped to two
evaporators where the solution is concentrated to 97% ammonium nitrate content.
The evaporators are of vertical one pass design, and are operated at a pressure of 0.40 Bar and
a temperature of maximum 160°C. The temperature is controlled by adjusting the steam supply
volume to the evaporators. The vapours from the evaporator are condensed in a condenser and
the condensate is re-used in a scrubbing system to control emissions. Vacuum to transfer the
vapours is obtained by means of a steam ejector.
The concentrated ammonium nitrate solution is pumped to a prill feed surge tank, in which some
gaseous ammonia is added to control the pH at a value of 6, 0. This is a manual process and
will in future be automated.
From the prill feed surge tank the ammonium nitrate solution is pumped to the head tank, which
is located at the top of the prilling tower. This is only done if the PH value is within defined limits.
The ammonium nitrate solution is gravity fed through 8 nozzles, which is equipped with
showerhead plates.  The showerhead plates forms liquid droplets of ammonium nitrate.   When
these droplets fall down the 40 meter high tower, the droplets solidify.
The heat from the solidification process is removed with air flowing in the opposite direction as
the droplets by using electric driven fans installed at the top of the prilling tower.   The air from
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 13 of 13
the tower is scrubbed and the water is fed to the top scrubber tank, which in turn overflows to
the bottom scrubber system for re-use in the process.
The bottom of the tower is shaped in a conical form, which allows air inflow through openings in
the structure. Prills are transferred by means of a conveyor that is situated in the centre of the
conical section.
These ammonium nitrate prills are first dried in a pre-dryer with co-current hot air flow induced
into the drier.  From the pre-dryer the prills are led into a dryer where they are further dried
using the same technology.   The product leaving the dryer is fed to a rotary cooler, using a
bucket elevator. Cool air is induced using an industrial air conditioning system.
The air leaving the pre-dryer, dryer, cooler and de-dusting system is also treated in scrubbers
where ammonium nitrate dust is removed.
The cooled product is led onto screened vibrators, where the prills are separated into oversize,
undersize and on-size product.  The oversize and undersize product is returned to the
ammonium nitrate feed and dissolving tanks.
The on-size product from the screen is led into a fluidized bed plate cooler where the product is
further cooled to ± 31°C. The product then enters a coating unit where the product is coated
with an oil/wax/ATH mixture in order to decrease the caking tendency. After coating, the product
is finally transported via a reversible weigh-belt to a storage facility (Gent C, 2005, Prillan plant
induction manual).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 14 of 14
1.3 Products of the Plant
The following are products manufactured by the plant (http://www.sasol.com, Accessed 9
November 2006):
· Expan 400 with a density of  0,750 to 0,770 ton/m³
· Expan 300 with a density of  0,690 to 0,750 ton/m³
· Expan 200 with a density of  0,650 to 0,690 ton/m³
· Expan 100 with a density of  0,590 to 0,650 ton/m³
PHOTO 1 – AMMONIUM NITRATE
http://www.alibaba.com, Accessed January 19, 2007
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 15 of 15
1.4 Problem Statement
The Prillan explosives manufacturing plant asset healthcare case study, Chapter 2, indicates
that there are limited tools identified, and in use, that can be utilized by the plant management to
increase the equipment reliability and asset performance.
The proactive work capacity index, Figure 2, indicates that schedule compliance, schedule
loading and wrench time must be increased to compare with world class standards.
1.5 Purpose of this Research
The purpose of this research is to identify tools for the revision of a maintenance strategy for an
explosives manufacturing plant, using asset management principles. These tools must be aimed
to increase the proactive work capacity index, Figure 2. The application of asset management
models must be researched and the commonalities between these models must be established
to provide a roadmap for implementation. Data must be collected and then be evaluated against
these commonalities to prioritize actions required to increase plant integrity and equipment and
engineering efficiency, using asset management principles. Leadership attributes and a change
management model must be presented.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 16 of 16
The proactive work capacity index (PWCi), Figure 2, must be increased.  The PWCi is a factor
determined by the product of the wrench time, schedule loading and schedule compliance.
Influences on wrench time (spanner time) are:
§ Material availability
§ Travel time
§ Instruction time
§ Administration time
§ Tool preparation time
§ Meeting time
§ Waiting time
§ Break time
To understand the recommendations of this research, the reader will be presented with a basic
understanding of:
§ The manufacturing process and workflow of the Prillan explosives manufacturing plant
based in Sasolburg
§ The plant history to identify with the current low pro-active work capacity index
§ The principles and application of asset management models applied within similar
industries
§ Different maintenance strategies and the application thereof in manufacturing plants
§ Overall equipment efficiency (OEE) and how this is measured
§ Different maintenance ratios and benchmarks on these ratios
§ Basic materials management principles and philosophies
§ Measurements of engineering team effectiveness
§ Management processes and leader attributes  needed
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 17 of 17
1.6 Specific Deliverables
Asset management tools must be developed that can be applied to revise and manage the
maintenance strategy of an explosives manufacturing plant. These tools must have the ability to
be visually presented as a “dashboard” to trend and manage asset performance and reliability
and to increase the proactive work capacity index of the engineering team.
These tools must include:
§ Tools to measure and evaluate engineering execution performance
§ Tools to measure the overall equipment efficiency
§ Tools to manage overdue open works orders
§ Tools to align departmental and business mission and strategy
§ Tools to optimise and measure engineering planning effectiveness
“It is good practice to revisit current strategies regularly and evaluate their effectiveness. One
must change one's tactics every ten years if one wishes to maintain one's superiority”–
Bonaparte Napoleon (http://www.famousquotesandauthors.com, Accessed 12 January, 2008)
The outcome of this research is aimed at positioning the existing technical department to
effectively maintain the explosives manufacturing business, and to contribute to a sustainable
Sasol owned business by applying asset management tools. A picture of the strategy must be
formulated in the minds of the maintenance personnel, not only words that can be interpreted
differently. For this reason a visual “dashboard” that can be interpreted by all engineering
personnel must be designed. The SAMI triangle model can be used as a required end state
picture if training and coaching in the interpretation of all the building blocks are provided. The
people affected by the implementation of the recommendations from this research must be
change ready to make the implementation of a revised strategy lasting, and to ensure that there
are limited and manageable barriers and resistance to change.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 18 of 18
1.7 Chapter Summary
The manufacturing process flow and plant history is described in this chapter. The fact that the
proactive work capacity index is at 0.11 versus a world class standard of 0.53, Figure 2 ,
indicates that the current maintenance strategy and the utilization and application of the
available engineering resources can be improved (Hedding R, SAMI™, 2005). This chapter
states the required deliverables namely tools that can be used to revise and manage the
revision of the current maintenance strategy by using asset management principles. These tools
must have the goal to improve on asset reliability and performance and to increase the
proactive work capacity index and must include:
§ Tools to measure and evaluate engineering execution performance
§ Tools to measure the overall production effectiveness
§ Tools to manage overdue open works orders
§ Tools to align departmental and business mission and strategy
§ Tools to optimise and measure engineering planning effectiveness
These tools must have the functionality to be trended over time to manage assets.
Chapter 2 aims to provide the reader with literature review to define existing asset management
models and measurements that can be used to ensure the sustainability of the implementation
of an asset management model. The influence of employees on this strategy must be reviewed
and a change management model must be used to ensure the successful implementation of an
asset management model.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 19 of 19
CHAPTER 2 - LITERATURE REVIEW
2.1 Purpose and Chapter Outline
The purpose of this chapter is to do literature review on asset management models and to
determine the common elements of these models. This is the catalyst to make
recommendations to close gaps within the current maintenance strategy and to identify tools
that can be used to increase the proactive capacity work index, Figure 2 – RESULTS OF 2005
PROACTIVE WORK CAPACITY INDEX COMPARISON TO WORLD CLASS. Various
maintenance strategies, their applications and benchmarked ratios for maintenance
measurements are presented. From this literature review tools can be developed that can be
used to revise the current maintenance strategy and to establish an asset management culture.
When a manufacturing facility is continuously upgraded and modified, audits need to be
conducted to ensure plant integrity. The results of these audits revealed that there were
shortfalls with regards to plant integrity (AIA, May 2006, Mechanical integrity audit), legal
compliance (Smit F, 2006, Legal compliance audit) and equipment reliability (Turbo Services,
2006, MTBF report on pump performance). A spares audit conducted indicate that the spares
kept do not correspond to the actual plant needs and that the spares description on the plant
master data do not reflect the technical specification required (Oosthuyzen P, 2006, Inventory
audit).
This chapter will take into account the human element that is necessary for the revision of the
maintenance strategy. The human element includes change management and the attributes
and involvement needed from the management of that plant. A management tool to ensure that
the various departmental strategies and that of the overall business are aligned will be
presented.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 20 of 20
2.2 Prillan Explosives Plant Asset Healthcare Case Study, SAMI Inc, 2005.
2.2.1 Background
Sasol Limited assigned SAMI inc. as management consultants to establish an asset
management model within most of the Sasolburg operations, of which the explosives division
forms part. This dissertation will be aimed at supporting the SAMI™ asset management model,
Figure 1, and give recommendations on how to entrench this asset management culture.
FIGURE 1 - SAMI Asset Healthcare Triangle
SAMI™, 2004, Asset healthcare triangle
The red circled areas in Figure 1 above indicate where human intervention is of utmost
importance, and therefore change in behavior is essential.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 21 of 21
2.2.2 Objectives
Maintenance performance indicators for selected Sasolburg based production facilities were
compiled and compared to world class standards in 2005. Some of these indicators are existing
indicators in use and must be evaluated for its effectiveness. These results were obtained from
using existing data on the SAP R/3 system and by using techniques such as DILO’s (Day-In-
the-Life-Of). These indicators are referred to as engineering team effectiveness measurements.
Figure 2 indicates the gap between the current and projected proactive work capacity index.
The proactive work capacity index is the product of schedule compliance, schedule loading and
wrench time. This is a leading measure to provide for time to correct any deviations from a set
target. A higher value of this index can be interpreted that planned preventative maintenance is
done as planned and that available manpower is optimally utilized.
Schedule compliance is the measure to indicate if scheduled work were complied too. As most
of the preventative maintenance scheduled work in an explosives plant environment has
statutory requirements, the ideal compliance must be 100%. A high compliance factor indicates
that planned work was actually done.
Schedule loading measures the available man-hours that are scheduled. This target is set at
90% to allow for emergencies and any other unplanned work. A higher value of this load factor
indicates that emergency and breakdown activities are under control.
Wrench time is defined as the physical metal to metal work (http://samicorp.com, Accessed
February 21, 2006). Results of different wrench time calculations will vary between individuals
within the same department but gives a good idea on where opportunities are to increase the
engineering team effectiveness.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 22 of 22
2.2.3 Results
FIGURE 2 – Results of 2005 proactive work capacity index comparison to world class
Proactive Work Capacity Index (PWCi)
(Schedule Compliance)x(Schedule Loading)x(Wrench Time)
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60
World Class
Projected
Current
(Sch Compl = .90)x( Load factor = .90)x( wrench time = .65) = .53
(S.C. = .85) x (L.F. = 0.80) x (WT = .60) = .41
(S.C. = .58) x (L.F. = .41) x (WT = .46) = .11
SAMI™, 2005, Prillan proactive work capacity index comparison to world class
The proactive work capacity index includes wrench time and to understand the activities
performed by the engineering team a DILO (Day in the life of) was performed on selected
personnel.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 23 of 23
A DILO was performed on a mechanical artisan in 2005 and yielded the following results:
FIGURE 3 - DILO on mechanical artisan, Explosives manufacturing plant, 2005
SAMI™, 2005, DILO analysis of mechanical artisan
2.2.4 Conclusion
Gaps identified from this case study are:
§ The schedule compliance is lower than world class, can be improved
§ The load factor is lower than world class, can be improved
§ Wrench time is lower than world class, can be improved
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 24 of 24
FIGURE 4 - Swiss cheese model
http://www.pubmedcontrol.nih.gov, Accessed 15 August, 2008
Reason J. T. (1990) defines the holes in as weaknesses in various processes that must be
aligned to achieve a specific outcome. If this theory is correct then the inverse must also be
correct. These holes can also be projected as required fundamentals that must be in place and
aligned to achieve a specific outcome, such as the implementation of a revised maintenance
strategy.
When a strategy is developed and implemented it must be to the advantage of all the parties
affected. The shareholders with regards to return on investment and market share, the
customers with regards to product quality, price and service, and for the employees by creating
work security, financial gain, growth and development opportunities.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 25 of 25
2.3 Asset Management
Mitchell J. S. (2002:9) states that asset management provides the basis for collectively
optimizing investment, resource allocation, and spending decisions to gain greatest lifetime
return. Its emphasis is on achieving maximum sustainable lifetime effectiveness from design,
procurement, and installation through operation, maintenance, and eventual replacement or de-
commissioning.
The maintenance cost of the explosives manufacturing plant was on average 25% of the total
fixed cost measured over a period of 5 years, 2001 to 2005, Smit A, 2005, Sasol Nitro financial
department. This fixed cost includes:
§ Labour cost
§ Maintenance cost
§ Information management and software cost
§ Administration cost
§ Management allocated cost (10% of total fixed cost)
§ Depreciation expense
Savings on the fixed cost budget as a result of an effective maintenance strategy and effective
resource utilization can be very significant. In this research the Reliability Centred Maintenance
(RCM) approach is discussed as a tool to develop equipment maintenance strategies that can
result in higher plant availability and lower input fixed cost. This approach indicates what
maintenance strategy for a piece of equipment is applicable by identifying the impact of failures.
It is sometimes the correct approach to run equipment or part thereof to failure (Mitchell J. S,
2002). There must however be a continuous drive to eliminate maintenance activities where
possible. World class practice for reactive maintenance is 20% of all maintenance activities
(http://www.emmersonprocessxperts.com, Accessed 19 May 2008). Reactive maintenance is
later referred to as priority 1 (emergency) and 2 (urgent) work.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 26 of 26
2.4 Asset Management Models
Asset management is a comprehensive, fully integrated, strategy, process, and culture directed
at gaining greatest lifetime effectiveness, value, profitability, and return from production and
manufacturing assets (Mitchell J.S, 2002:3).
Physical asset management is an integral, inseparable part of the production and manufacturing
processes. Design, procurement, installation, operation and maintainability to ensure that in-
service reliability matches business and mission requirements are all included in physical asset
management (Mitchell J.S, 2002:3).
By using asset management principles in the development and implementation of a
maintenance strategy, the plant integrity, safety and reliability will be increased. An asset
management approach will include the people development and training component of the asset
management components, Figure 5.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 27 of 27
Figure 5 illustrates the asset management components. This illustration can be summarised as
people, process and technology.
FIGURE 5 – Asset Management Components
Pretorius H, 2007, Maintenance Africa, Asset management components
Process &
Equipment
Logistics &
Facilities
Documents &
Data
Programmes &
Software
People &
Development
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 28 of 28
An asset management strategy must include the following elements (Peterson S.B, 2004,
Defining Asset Management):
§ Empowered Workforce
§ Reliability Centred Maintenance
§ Work Management Processes
§ Predictive and Preventive Maintenance
§ Self-managed Work Teams
§ Measures of Leading and Lagging KPI’s
§ Reliability Leadership and Planning
§ Safety, Health and Environment
§ Continuous Improvement
§ Reliability Modelling and Equipment Risk
§ Assessment
§ Cost of Unreliability Tracking
§ Root Cause Failure Analysis
§ Capacity/Business Objectives Modelling
§ Lifecycle Costing/Engineering
§ Activity-based Management
This research will have specific reference to “quick wins” to increase the proactive work capacity
index of the engineering team. Army D, 2006, The SAMI Times, Volume 7, states that change
management is an integral part of asset healthcare. Coaching through the change process is
important to make the change a lasting experience.
The skills needed to run today’s factories and buildings are changing faster than people can
adjust, Levitt J, (2005:241). This illustrates the importance to invest in a people development
and retention strategy.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 29 of 29
There are many asset management models available on which a maintenance strategy can be
developed and revised. The model used by Brand M, 2004, Figure 6, defines these strategy
elements as “Asset Management Human Enablers”.
The catalyst of all the asset management elements is the human enablers to ensure that this is
a continuous improvement process and that it is sustainable (Brand M, 2004, Sasol Synfuels).
The total business and all the role players must accept that change will happen and they must
be “change – ready”. The success of any new strategy will depend on the preparedness and
willingness of the employees to improve on their current achievements, and to understand that
what was good enough yesterday is not necessary good enough today and for the future
(http://www.cultureandrecreation.gov. au, Accessed 20 January, 2009). Employee willingness
and preparedness can be achieved by making all the people affected by this change, part of the
design of the “to-be” strategy. The development and revision of the current maintenance
strategy must have a project management approach to ensure that the deliverables are met
within the planned cost and schedule.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 30 of 30
FIGURE 6 - Process flow of the asset management model
PLANNING (HOW, WHO)
EVALUATION
SCHEDULING
(WHEN)
ASSET PROVISION
ASSET UTILISATION
RISK MANAGEMENT ASSET PERFORMANCE
MANAGEMENT
ASSET MANAGEMENT
INTEGRATED APPROACH
BUSINESS PROCESSES
MAINTENANCE
MAINTENANCE
WORK
EXECUTION
ENGINEERING OUT
OF MAINTENANCE
BUSINESS GOALS
ASSESSMENT
MAINTENANCE WORK
IDENTIFICATION
(WHAT)
MAINTENANCE
CYCLE:
CONTINUOUS
IMPROVEMENT
PROCESS
TECHNICAL INFORMATION
MANAGEMENT
Asset Management Model
Brand M, 2004, Sasol Synfuels
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 31 of 31
Figure 7 - ASSET MANAGEMENT ENHANCING PROCESS
Brand M, 2004, Sasol Synfuels
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 32 of 32
2.5 Maintenance Strategies
Mitchell J.S, (2002) states that asset management is a combination of concepts and
approaches from various maintenance strategies. These include reactive, preventive, condition
based (predictive), proactive, reliability centred approaches and total productive maintenance
strategies.
2.5.1 Breakdown (Reactive) maintenance
This strategy is purely reactive and requires no scheduled or planned maintenance tasks. The
correct application of this maintenance strategy normally results in the repair or replacement of
components and the failure does not impact on the process. When not applied correctly or
controlled this can result in large and uncontrollable maintenance expenditure (Levitt J, 2005).
The total cost of failures, including safety and environmental, impact on production, repairs and
logistics, are typically spread among cost centres. When this strategy is applied the decision
must be based on probability, cost and consequences.
2.5.2 Preventive Maintenance
This is a time based maintenance strategy where equipment is taken off-line to be inspected for
fitness. This is a well established strategy in the chemical industry and scheduled “mayor-
shutdowns” is the result of this strategy. This fits in well with legislation such as the
Occupational Health and Safety Act that describes pressure vessel testing and inspection every
36 months. This period can be extended by applying Risk Based Inspection (RBI) studies on the
equipment. This is a technique that takes statistical data and operating conditions and products
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 33 of 33
handled into account to determine the frequency of inspection and testing of equipment. This
study is performed by a panel of subject experts and includes process, maintenance,
metallurgical and operating personnel. World class performance is at 35% of maintenance
activities spend on preventive maintenance (http://www.emmersonprocessxperts.com,
Accessed 19 may 2008). This strategy can be cost effective when equipment operation is
consistent, average life is predictable, failures are well understood and useful failure statistics
are available (Mitchell J.S, 2002).
2.5.3 Predictive (Condition based) Maintenance
This strategy is condition-based and data is used to predict failures. This data can be used to
determine the condition of equipment and to evaluate when corrective action must be taken.
This strategy makes use of technologies such as vibration, temperature and ultrasonic
detectors, oil analysis and visual techniques. Measuring equipment can be permanently
installed for continuous monitoring or can be hand held. Human senses form part of this
strategy and inspections schedules can be designed to include frequent equipment inspections.
World class companies spend 45% to 55% of their maintenance activities on predictive
maintenance (http://www.emmersonprocessxperts.com, Accessed 19 may 2008).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 34 of 34
Mitchell J. S (2002:61) states that condition based maintenance can:
§ Warn of most mechanical problems in time
§ Increase equipment life and utilization
§ Reduce maintenance cost – both parts and labour
§ Allow for reduction in preventative maintenance
§ Minimize cost and hazard to equipment as a result of unnecessary overhauls
§ Increase the likelihood that components operate to optimum lifetime
§ Reduce requirement for spare parts
§ Increase awareness of equipment condition
§ Form the core of effective lifetime management
§ Provide information for continuous improvement, work, and logistic planning
Condition based maintenance will not:
§ Eliminate defects
§ Stop machines from deteriorating
§ Eliminate all preventive maintenance
§ Reduce personnel
§ Decrease lifetime maintenance cost
2.5.4 Proactive maintenance
This strategy concentrates on the monitoring of equipment performance and equipment health
to prevent it from deteriorating to the point of brake down. The aim of this strategy is to extend
the lifetime of equipment to the maximum and to take equipment out of service before it brakes
down. A proactive maintenance approach can reduce maintenance expenditure, Figure 8.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 35 of 35
Proactive maintenance begins with the identification of root causes of equipment failures and
the initial application of acceptable engineering standards (Mitchell J.S, 2002).
FIGURE 8 - Cost advantages of maintenance types
Reactive
Preventive
Predictive Proactive
Effectiveness
Cost
Fix it after it breaks,
Overtime heroes
Cost Advantages of Maintenance Types
Maintain before it has
A change to break
Identify and correct problems
Eliminate problems
Mitchell J.S, 2002:49, Physical Asset management Handbook
To gain maximum effectiveness and optimum maintenance cost it is necessary to move from
phase to phase, through the defined phases in Figure 8, from a reactive to a proactive
maintenance approach (Mitchell J.S, 2002).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 36 of 36
2.6 Reliability Centered Maintenance (RCM)
In the past few years a growing interest has emerged in the field of Reliability Centred
Maintenance (RCM). Being originally developed for the airline industry, RCM is a structured
process to determine the equipment maintenance strategies required for any physical asset to
ensure it continues to fulfil its intended functions in its present operating context.
Therefore, the goal of RCM is to determine the critically equipment in any process, and based
on this information, design a customized preventive/predictive maintenance strategy for that
specific equipment. RCM initiatives however involve a tremendous amount of resources, time,
and energy. Thus the RCM process is extremely time consuming and expensive especially
when done according to the textbook (Levitt J, 2005).
 The RCM process is only one tool to determine the appropriate strategy to limit the risks to the
company, environment, community, operations or the health and safety of its employees (Levitt
J, 2005). The following RCM decision diagram, Figure 9, must be applied to all machinery and
processes. This decision diagram evaluates the consequences of hidden failures, safety and
environmental impacts, operational and non – operational consequences.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 37 of 37
Figure 9 - RCM decision diagram
Lochner T. (2006). RCM in support of maintenance strategy revision. Presented at the meeting
of engineering managers of all Sasol, Sasolburg based business units held in Sasolburg.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 38 of 38
2.7 Overall Equipment Efficiency
Overall equipment efficiency (OEE) is the product of normalized availability (Uptime), production
throughput (Yield), first run quality and cost per unit (Mitchell J.S, 2002:87). The maintenance
strategy applied to equipment must increase scheduled work and reduce emergency, urgent
and any form of unscheduled work. The physical asset management process must be driven top
down and accomplished bottom up (Mitchell J.S, 2002).
When equipment maintenance strategies have been developed and implemented, it must be
measured. The overall equipment efficiency measurement can be used to evaluate if the current
strategy is fit for purpose. Essentially, OEE offers a measurement tool that helps identify the real
areas of opportunity within an operation. These areas are termed the "six big losses." The OEE
measurement allows the user to break up the possible losses into smaller components to do
better evaluation of the impact of these losses.
The six losses are:
§ Breakdowns from equipment failure (unplanned downtime)
§ Setup and adjustments from product changes and minor adjustments necessary to get the
equipment operating properly after the line change
§ Idling and minor stoppages due to abnormal operation of the equipment causing momentary
lapses in production, but not long enough to track as downtime
§ Reduced speeds, the discrepancy between design and actual speed the equipment
operates
§ Process defects due to scrapped production and defects needing rework
§ Reduced yield and lost materials during the manufacturing process, from start-up to end of
production run
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 39 of 39
Companies with an OEE of 85 percent or more, is considered to have world class performance
(http://www.oeetoolkit.nl, Accessed 11 January, 2009).
FIGURE 10 - Components of Overall Equipment Efficiency (OEE)
http://www.oeetoolkit.nl, Accessed 11 January, 2009
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 40 of 40
Figure 10 illustrated the bottom-line good output is only a fraction of what it could be if losses in
availability, performance, and quality are reduced. The diagram also suggests that to maximize
effectiveness, to grow the good output on the bottom line, not only quality losses must be
reduced, but also availability and performance losses. These three factors work together, and
the lowest percentage is usually the constraint that most needs addressing (Levitt J, 2005).
It is recommended that the operator collect the daily data about the equipment for use in the
OEE calculation. Collecting this data will (http://www.oeetoolkit.nl, Accessed 11 January, 2009):
§ teach the operator about the equipment
§ focus the operator’s attention on the losses
§ grow a feeling of ownership of the equipment
The shift leader or line manager is often the one who will receive the daily operating data from
the operator and process it to develop information about the OEE. Working hands on with the
data will (http://www.oeetoolkit.nl, Accessed 11 January, 2009):
§ give the leader/manager basic facts and figures on the equipment
§ help the leader/manager give appropriate feedback to the operators and others involved in
equipment improvement
§ allow the leader to keep management informed about equipment status and improvement
results
§ Identify future expenditure and upgrade needs
Overall Equipment Efficiency (OEE) is a measure comparing how well manufacturing equipment
is running compared to the ideal plant and design parameters.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 41 of 41
2.8 Maintenance ratios
The following are maintenance measurement ratios that can be evaluated against international
standards (http://wwwfindarticles.com, Accessed 12 January, 2009).
2.8.1 Maintenance material cost as % of total sales
This ratio measures the maintenance material cost as a percentage of the total sales. World
class minimum is 1.5% and maximum is 2.8%. This measurement must be used as an average
over a period of time to include major shutdown and repair activities.
2.8.2 Maintenance cost as % of total sales
This ratio measures the total maintenance cost, labour and material included, as a percentage
of the total sales. World class minimum is 1.5% and maximum is 5%.
2.8.3 Maintenance labour cost as % of total maintenance cost
This ratio is an analysis of the percentage labour cost of the total maintenance expenditure.
World class minimum is 10% and maximum is 40%.
2.9 Planning and materials management
2.9.1 Work identification
Work identification is the result of the maintenance strategies that was developed for all the
equipment within the specified process. The appropriate maintenance strategy is used to
develop a preventive maintenance plan and to determine scheduled maintenance activities with
OEE = Actual output / Theoretical maximum output
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 42 of 42
the goal to increase the life and performance of an asset (Levitt J, 2005). Planned maintenance
is maintenance that is scheduled in advance with a specific lead time. The measurement of
productivity based on planned maintenance activities will optimize the engineering department
performance (Mitchell J.S, 2002).
2.9.2 Failure analysis
A method to verify if the selected maintenance strategy is applicable to a piece of equipment, is
Root Cause Failure Analysis (RCFA), and is based on failures that have occurred in the past
and the overall effect on the business is known or anticipated
(http://www.maintenanceresources.com, Accessed 14 January, 2009. RCFA ensures that a
proactive measurement is taken to manage a failure. Most costs associated with conducting
RCFA are in people’s time and resources to verify findings and to give trustworthy information.
RCFA is a disciplined vertical problem solving methodology used to determine levels of root
causes of specific failure events (Levitt J, 2005). The following process is necessary to
implement a successful RCFA effort:
§ Prioritize – Determine what is most important to work on
§ Analyze – Analyze the failure event to determine root causes
§ Recommend – Develop recommendations and solutions to the causes discovered
The RCFA supports the Six Sigma process. Mitchell J.S. (2002:79) states that there are
eight phases to a Six Sigma project are:
§ Project definition – a project must be quantified and have realistic boundaries
§ Map the as-is process
§ Define the process inputs and outputs
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 43 of 43
§ Process measurement – gather data including the number of defects
§ Process analysis – analyze the test failure occurrences and modes
§ Process improvement
§ Validate improvement – key variables are identified above are tested using design of
experiments and other techniques
§ Process control – improvements are sustained and institutionalized so that backsliding
does not occur
2.9.3 Prioritizing
Priority means "coming before in time, order, or importance” (http://www.franklin.com). When
prioritizing maintenance work it must be based on facts and acceptable engineering principles.
By applying acceptable engineering principles, emotions will be eliminated from the prioritizing
process.
Emotional priorities are based on individual or group needs within a working environment and
does not take into account the needs of the entire business. These are the typical requests that
are not logged official with a notification but rather verbally or while passing by. The reason for
this behaviour can also be because the requester does not want to load a priority 1 or 2 works
order as this can be reflected to that individual as being negligent. This type of behaviour must
be changed to move from being in a reactive mode to a planned and scheduled environment.
When events can be planned control over those events can be exercised.
Prioritizing work must take into account the following, in no order (Levitt J, 2005):
§ Risk to injury
§ Risk to environment
§ Business risks
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 44 of 44
§ Resulting costs if not taken immediate action
§ Production losses
§ Reputation damage
2.10 Maintenance Planning and Execution
To be able to do proper planning, work orders (requests) have to be generated using the
computerized maintenance management system (CMMS) (SAP R/3) system. These works
orders are combinations of the maintenance strategies and maintenance requirements
notifications must be loaded on the CMMS. In this dissertation work orders are also referred to
as notifications. These notifications can be as a result of inspection by operational or
engineering personnel or as a result of equipment not running within the design parameters.
These requests can be referred to as unplanned maintenance. This includes emergency and
urgent work that is required and sometimes priority 3 or planned work. Emergency work is
defined as priority 1 work and this type of work must start immediately and must continue until
the work is completed.
World class performance for this type of work order is between 0% and 5% of the total works
orders within a defined time, normally measured in weeks (http://www.samicorp.com, Accessed
21 February, 2006). This type of work must be at a maximum of 15%. The reduction of priority 1
work will reduce call-outs and other schedule breakers. Because priority 1 work is unanticipated
failures, these are failures where RCFA studies can be conducted to ensure that problems are
understood and eliminated.
Factors that affect the amount of emergency work are (Mitchell J.S, 2002):
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 45 of 45
§ The current state of the production unit and machinery
§ The willingness of production and maintenance personnel to create a notification if they are
aware of any problem
§ Discipline of personnel to assign the correct priority to works orders
§ Quality of inspections
§ Quality of equipment maintenance strategies
§ Operating parameters
Urgent work is defined as priority 2 work and must start within 7 days. World class for this type
of orders is below 10% (http://www.samicorp.com, Accessed 21 February, 2006).
The scheduling of tasks start when the required work orders are populated within a specific time
and period, and balanced with the available man hours. A target of 80% available capacity
planning is acceptable (http://www.samicorp.com, Accessed 21 February, 2006). This allows
time for training, breaks and safety talks. In order to manage the efficiency of the planning
system key performance indicators must be measured and trended. The following six indicators
will ensure that the maintenance department is optimally utilized (Hedding R, 2005).
2.10.1 Percentage Emergency (Priority1) Work Orders
This type of work is classified as reactive and interrupts the daily schedule. Priority 1 work starts
immediately and work will continue until completed. Call-outs are also classified as priority 1
work. Word class maximum for this type of works orders is 5% of the total amount of works
orders (http://www.samicorp.com, Accessed 21 February, 2006) and is an existing tool in use in
the explosives manufacturing plant.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 46 of 46
2.10.2 Percentage Urgent (Priority 2) Work Orders
This type of work will start within 7 days but not on the same day as the notification date. This
type of work will therefore not interrupt the daily schedule. Word class maximum for this type of
works orders is 10% of the total amount of works orders (http://www.samicorp.com, Accessed
21 February, 2006) and is an existing tool in use in the explosives manufacturing plant.
2.10.3 Percentage Schedule Compliance (Hours)
This is expressed as a percentage of completed scheduled work orders. This is an indication if
the maintenance department completed the planned work. In combination with resource loading
this measurement will identify that more (or less) work was performed by the department
measured against the planned work. This measurement is a weekly snapshot of what work was
scheduled vs. what work was completed, and no credit is given for partially completed work.
The maximum score can therefore be 100%. If planned work is executed according to the
planning schedule, there will be less dependence on contractors and the need to perform
overtime work. If schedules are complied too services and materials can be purchased more
cost effective as the activities are planned and the lead times are known to all parties involved
(http://www.samicorp.com, Accessed 21 February, 2006).
2.10.4 Capacity Planning (% Schedule Loading – Hours)
The aim of capacity planning is to optimize the available hours of the workforce, and to assign
scheduled tasks to that available time. The scheduled hours must be at 80% to allow for urgent
and emergency work (http://www.samicorp.com, Accessed 21 February, 2006).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 47 of 47
2.10.5 Backlog in Crew Weeks
This is the amount of scheduled work looking 7 weeks ahead. World class performance is
between 5 and 7 weeks. This value will indicate if the maintenance team is over or under staffed
and is also an indication of the effectiveness of the current maintenance strategy. Too low a
backlog can encourage tradesmen to stretch work or to work ineffectively to avoid reduction of
manpower. Too high a backlog will cause the customer to suffer delays for routine work
requests (http://www.samicorp.com, Accessed 21 February, 2006).
2.10.6 Preventive Maintenance Schedule Compliance
This measurement is a snapshot taken every week on the same day and time. It measures the
completed amount of scheduled work and compares this to what was planned. The maximum
score therefore is 100%, Figure 11. A low score indicates that the maintenance schedules are
not done and that there are many schedule breakers. It can also indicate that work orders were
not closed for a variety of reasons including waiting for spares or specialized services. This data
must be analyzed continuously (http://www.samicorp.com, Accessed 21 February, 2006).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 48 of 48
FIGURE 11 - Graphical representation of engineering performance indicators for the Prillan
explosives manufacturing plant, week 23 to week 30, 2007
SAP R/3, WEEK 23 - 30, 2007, RETRIEVED 16 JULY 2008
% Urgent Work
0
20
40
60
80
21 22 23 24 25 26 27 28 29 30 31
Week #
% Emergency Work
0
5
10
15
20
25
21 22 23 24 25 26 27 28 29 30 31
Week #
% Scheduled Hours
0
20
40
60
80
100
120
140
21 22 23 24 25 26 27 28 29 30 31
Week #
% Scheduled Tasks
0
20
40
60
80
100
21 22 23 24 25 26 27 28 29 30 31
Week #
Backlog Status
0
1
2
3
4
5
6
21 22 23 24 25 26 27 28 29 30 31
Week #
Capacity Loading
0
20
40
60
80
100
21 22 23 24 25 26 27 28 29 30 31
Week #
PM Attainment
0
20
40
60
80
100
21 22 23 24 25 26 27 28 29 30 31
Week #
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 49 of 49
2.11 Work Execution Review
This process is designed to review work executed and is in the form of a weekly meeting
between the engineering and operational personnel. Unplanned downtime is reviewed and the
real cause of failures must be investigated (http://www.samicorp.com, Accessed 21 February,
2006). Standard time to execute work must be updated to ensure that the available man hours
are known to perform similar activities in future. The data available on the CMMS network must
be regularly reviewed to ensure the integrity of the data. This data can be updated after failure
analysis and the following techniques can be used to determine the real causes of failures:
§ Failure mode and effect analysis (FMEA)
§ Fishbone or Ishikawa diagrams
§ Histograms
§ Process maps
§ 5 Why’s ( Ask five times why)
2.12 User Status Management
A tool within the SAP CMMS system is the monitoring of user status. This identifies the work
order by the status within the planning and execution cycle. The user status identification
ensures that the planner and management can focus on the reason the work order is not closed
on the planned date and includes waiting for:
§ Spares
§ Quotations
§ Invoices
§ Specialized skills or equipment
§ Documents or procedures
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 50 of 50
Overdue work orders must be reviewed weekly to determine the status of these work orders.
Open work orders are work orders that can not be closed for mainly two reasons, the work order
has not been technically completed or the work order has not been financially completed. These
orders are updated with a user status to indicate why the work order has not been completed.
This user status can include:
§ WCAN - Work was cancelled
§ REFU - Refurbishment Item
§ WFEQ - Waiting for equipment
§ WFMT - Waiting for material
§ WFSR - Waiting for service provider
§ CWIV - Waiting for invoice
§ EQNA - Equipment not available
§ WIPR - Work in progress
§ JCPA - Job complete, planner action
SAP has the functionality to display these open orders graphically. Overdue open work orders
are open orders that have exceeded the planned completion date and are available on IW38
function on SAP P/3. This can be displayed per engineering function as well as per service
provider. This must be managed to ensure that work that has been completed is paid for and
also ensure that service provider efficiency is managed. Examples are:
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 51 of 51
FIGURE 12 - Overdue open work orders for planner group A08 on 2008-08-13
User Status Definitions cont’d..
? Mechanical
- 242 orders
? Electrical (Offices)
- 2 orders
?Electrical (Plant)
- 53 orders
?Control Systems
- 22 orders
Total orders = 319
Figure 13 displays all the overdue open work orders for a specific planner group or plant. This
tool can be used to track overdue open orders per engineering discipline.
FIGURE 13 - User status for overdue open work orders for planner group A08 on 2008-08-13
? Work in Progress = 95 orders
? Sub order outstanding = 66 orders
? Cost outstanding = 40 orders
? Waiting for JCE = 32 orders
? To be planned
=  25 orders
? Return to Planner
= 14 orders
? Waiting for external
spares on order
= 13 orders
? Complete = 13 orders
? Waiting for external
services = 8 orders
? Planner to Teco = 5 orders
? Planned Work = 6 orders
Total orders = 319
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 52 of 52
Figure 14 displays all the overdue open work orders for a specific plant and indicates the reason
why it is still open according to the user status. This tool can be used to manage service
providers and to evaluate work that is in progress.
FIGURE 14 - Supplier detail and rand value for overdue open work orders for planner group
A08 on 2008-08-13
? ERD
=   R 167 411
? Nelco
=   R 0
- No JCE’s loaded
? Gobisa
=   R 33 383
? Mammoet
=   R 24 849
? ISC
=   R 7 105
? CDC
=   R 2 670
Total Value = R 235 420
Figure 14 displays the overdue works orders monetary value and can be used to do accurate
financial forecasting and to manage expenditure.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 53 of 53
2.13 Balanced Scorecard
Roles and responsibilities must be defined for the following processes (http://samicorp.com,
Accessed 21 February 2006):
§ Meetings
§ Works order execution, feedback and closure
§ RCA evaluations and execution
§ Planning and scheduling
§ Reporting responsibilities
These roles and responsibilities must clearly define who are Responsible, Accountable, Consult
and Inform (RACI). A balanced scorecard can be designed to measure the required outcome
per function and per an individual. The balanced scorecard links a company’s long term strategy
to short term actions. Mitchell J.S, (2002:80-b) states that there are eight keys related to
balanced scorecard success:
§ Balanced scorecard must be an integral part of the change process
§ Strong, visible executive sponsorship
§ Greater focus on long-term objectives
§ Build teamwork and align objectives
§ Measure results
§ Direct attention to factors that drive measures and results
§ Recognize that learning is an evolutionary process
§ Connect compensation to scorecard results
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 54 of 54
2.14 Materials Management
A recent audit was conducted on the accuracy of spares as indicated on the SAP PM system.
The method used was to compare the actual spares kept in the stores, to that which was
indicated on the SAP system. The results reflected that the information at hand is not
trustworthy and that some of the descriptions of item specifications were not described to an
acceptable and understandable standard to avoid confusion. A successful strategy must clearly
indicate what spares are critical to the process and what inventory must be kept.
Materials management deals with the logistics within all the components of the supply chain.
This includes sourcing, acquisition, quality control and the replacement of spares and
consumable items. Materials management can be broken down into three areas (Mitchell J. S,
2002):
§ Acquisition
§ Quality control
§ Standards
Many people and organizations refer to the management process of materials into two
categories, pulling and pushing (http://www.eventhelix.com, Accessed 20 January 2009). The
pull system is based that when stock is used or required, it is replenished. The push system is a
more scientific approach to ensure that stock is available and includes stock of high monetary
value and that is not easy available.
Materials management can be designed around the environment it serves. Just in time (JIT)
delivery of the correct item is the objective of every materials manager (Levitt J, 2005). The
basics of stock keeping are to ensure that stock is replaced when it is used. It is of importance
that the integrity of the stock items be ensured and that it complies with the required standard.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 55 of 55
Stock levels must be controlled and for this control there are various control measures:
2.14.1 Visual Control
This is the most common practice and material is replaced when the stock level is observed to
be low (Mitchell J.S, 2002).
2.14.2 Vendor Managed Inventory/Vendor Out Stock
This is when the supplier manages the customer’s inventory. This is usually based on the
Kanban system where the supplier manages the stock levels on behalf of the customer as a
value added service (Mitchell J.S, 2002).
2.14.3 Consignment Stock
This is a very good method to ensure that stock is available without having inventory on the
business balance sheet. This also reduces the risk of the customer if there are changes in the
product that is used as the obsolescence in the event of change is for the account of the
supplier (Mitchell J.S, 2002).
2.14.4 Smart Systems
Stock and inventory can be managed by the use of smart systems such as bar coding. These
systems can be connected to the suppliers and replenishment can be done remotely.
Materials management includes the ability to comply with all health and environmental
legislations and must be able to handle the equipment stored without damage and comply with
the equipment manufacturer recommendations. This includes the segregation of material,
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 56 of 56
climate control, and adjustment of material positions as in the case of large bearings to prevent
pitting and many more (Mitchell J.S, 2002).
2.15 Engineering Workforce
The success of the revision and implementation a maintenance strategy depends on people.
For this reason the existing performance and activities of the engineering team must be defined.
The leadership attributes must be established and a change management model is needed.
Most organizations operate with traditional organizational structures and this is creating
limitations to the individuals (Harrington J.H, 2004). These limitations include functional barriers
and organizations justify this by imposing tertiary qualification requirements for certain positions.
Self directed work groups can be established where people with different functions and
responsibilities can interact with no limitations imposed on them and where the required results
are defined and measured (Kelly A, 2001).
The key focus area becomes the sharing of knowledge and supporting other disciplines rather
than only performing within a defined functional discipline. Self directed work group
organizations are focused on partnerships and continuous improvement and development of the
plant and individuals within that group. This has specific reference to the
“production/maintenance” interaction. People with different functional responsibilities must see
themselves as partners in a team charged with a common goal. Management should stay
involved during the strategy revision process and create a change platform (MAC Consulting,
2008). This change platform must be used to get all role players together to share ideas and
can take the form of meetings or workshops. Involvement of all levels within the organization
creates trust and promotes the sharing of knowledge.
Roles and responsibilities must be defined and accountability must be understood and
accepted. It is important to ensure that strategic, tactical and operational issues are addressed
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 57 of 57
9Pretorius H, 2007). To be able to perform to the required standards within an assigned role the
individual or group must have the required depth and range of know how to have the desired
impact on the organization. Gaps within groups and individuals must be identified and
addressed by development programmes and training. On all levels the communication and
influencing skills of the people must be continuously developed (Daniels A.C, 2004). A
challenging environment must be created to ensure that there is an environment where people
are required to think and enable them to act accordingly (Herzberg F, 1993).
Herzberg found that the factors leading to job satisfaction were separate and different from
those leading to job dissatisfaction, hence the term “two-factor” model (Smit P.J and Cronje G.J,
2003). The sources of work satisfaction were termed “motivator factors” and include the work
itself, achievement, recognition, responsibility and opportunities for advancement. These factors
are related to the work content and are associated with a positive feeling about the job (Smit P.J
and Cronje G.J, 2003). The factors that lead to positive job attitude do so because they satisfy
the individual’s need for self-actualization at work (Suthmeister R, 1976).
The sources of work dissatisfaction were termed “hygiene factors” by Herzberg. These are
factors in the job context and include working conditions, company policies, supervision,
interpersonal relationships and salary. If these factors are adequately provided for in an
organization, there will be no dissatisfaction. Hygiene factors are associated with the individual’s
negative feeing about work and do not contribute to employee motivation (Smit P.J and Cronje
G.J, 2003).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 58 of 58
FIGURE 15 - Model of Herzberg’s two-factor theory
Smit P.J and Cronje G.J, 2003
There can be for scenarios using the mode by Herzberg (http://www.12manage.com, Accessed
27 April, 2009):
§ High Hygiene + High Motivation: The ideal situation where employees are highly motivated
and have few complaints.
§ High Hygiene + Low Motivation: Employees have few complaints but are not motivated. The
job is perceived as a pay-cheque.
§ Low Hygiene + High Motivation: Employees are motivated but have many complaints. A
situation where the work is challenging but the salary and working conditions are not good.
§ Low Hygiene + Low Motivation: The worst situation. Employees are not motivated and have
a lot of complaints.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 59 of 59
Mitchell J.S (2002:6) states that the culture change required for success will not occur without
involvement of the management. The management skills of the explosives manufacturing plant
can be evaluated with reference to their technical, management and people skills, Figure 15.
The following are management theories that influence the current and future organizational
culture (Daniels A.C, 2004):
§ Organizational design
§ Group and individual objectives and targets
§ Ownership and individual involvement
§ Communication and Information
§ Performance management
§ People training and development, career paths for every individual
§ Leadership and motivation
§ Recognition and incentive
§ Discipline
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 60 of 60
The following are attributes for a good/great supervisor:
TABLE 1 - Attributes for a good/great maintenance supervisor
Levitt J, 2005:254
PEOPLE SKILLS MANAGEMENT SKILLS TECHNICAL SKILLS
Good listener Is organized Dedicated to quality
Compassionate Can make decisions Knows equipment
Motivator Good delegator Knows job
Fair and consistent Meets goals of business unit Knows safety
Respected Can analyse progress to goal Can analyze problems
Honest Knows what is important Can evaluate skill level
Effective trainer Provides good customer service Understands product
Open minded Loyal to organization
Effective communicator Results orientated
Coach, not dictator Good planner
Good negotiator High productivity
Has a cool head Follow up
Flexible Can schedule
Can handle pressure Assign and keep priority
Can read people Understand and use budgets
Adaptable to change Is available
Has common sense Can communicate
Willing to learn
Positive outlook
An innovator
Praise in public
Discipline in private
Takes control if necessary
Not afraid to make mistakes
Treats people as equals
Can work with different types of people
Gives recognition for work well done
Can deal with difficult people issues
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 61 of 61
2.16 Change Management
FIGURE 16 - Phases in the Change Process
Smit P.J and Cronje G.J, 2003
Figure 16 illustrates the phases in a change process (Smit P.J and Cronje G.J, 2003). Change
is a process and the first step to change is for management to recognise the need for change
(Smit P.J and Cronje G.J, 2003).When the need for change has been identified managers must
clearly state the desired outcome of the change intervention. Third, the cause that necessitated
the need for change must be diagnosed. When the cause to change is clear, the change
process can be designed. The recommendations of this dissertation can be used as a change
process and an implementation plan must be developed taking factors such as cost, skills and
technology into consideration. After the change intervention is completed, it must be evaluated
to determine of the change intervention was successful. This evaluation can indicate the need
for further change initiatives.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 62 of 62
FIGURE 17 - Change Management Model
Mitchell J.S, 2002:126
Figure 17 illustrates that for the successful implementation of an asset management strategy
there must be a vision, resources, skills, action plans, commitment, incentive and
measurements in place. A lack of vision will result in confusion. A lack of resources and skills
will result in frustration. A lack of skills will result in anxiety. A lack of an action plan will result in
ineffectiveness. A lack of commitment will result in failure. A lack of incentive will slow down the
process. If the process is not measured, the implementation of this strategy will be temporary.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 63 of 63
2.17 Chapter Summary
In Chapter 2 the fundamentals of asset management models were researched and the elements
of these models include maintenance strategies, materials management, prioritizing and
planning. Commonalities between these asset management models are:
§ Equipment knowledge
§ Spares accuracy
§ Scheduled maintenance replacements
§ Visual asset performance measures
§ Technical training and development
Various maintenance strategies are evaluated and compared to its cost advantages and
applicability to equipment. These strategies range from breakdown maintenance to proactive
maintenance depending on the effect of failures on the safety and integrity of the plant as well
as the operational consequences. It is stated that Asset Management is a combination of all
these maintenance strategies. RCM can be used to determine the applicable maintenance
strategy per equipment or process to ensure that the equipment continues to fulfil its intended
functions in its present operating context. The OEE measurement identifies six losses within its
calculation. These are factors that influence quality, performance and availability. The overall
equipment efficiency measurement is a comparison between the actual plant performance and
the ideal plant. It is highlighted that the total asset management process is a combination of
planning, materials management and supervisory and management attributes and involvement.
Overdue work orders are often difficult to manage and the user status functionality on SAP R/3
can display a graphical representation thereof to do financial, service provider and engineering
management. The use of user status indicates the need for engineering personnel to fully
understand and use the CMMS system in use and the need for discipline to update the status of
works orders.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 64 of 64
To develop tools to improve the wrench time of artisans the activities performed by these people
is mapped by using the DILO technique. DILO’s indicate the actual time spend by artisans to
perform various tasks that reduces the available time for actual wrench or spanner time. The
revision of the maintenance strategy using asset management principles requires objectives
and targets for all involved in this process. A balanced scorecard can include these objectives
and targets per individual and functional areas to ensure that the business and individual’s
strategies are aligned.
The revision of a maintenance strategy involves people and can not be effectively executed
without change management interventions. The motivators and hygiene factors from the theory
of Herzberg provide for a basis to ensure that employees are motivated and experience job
satisfaction. The organizational culture, leadership attributes and available skills impacts on the
change management process. The change model must clearly indicate the need for change,
required.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 65 of 65
CHAPTER 3 – EXPERIMENTAL WORK
3.1 Purpose and Chapter Outline
The purpose of this chapter is to verify the merit of this research topic by using interviews and
questionnaires and to establish if there is a need to focus on any of the five commonalities of
asset management models defined in Chapter 2. These five commonalities are scheduled
maintenance replacements, spares accuracy, equipment knowledge, visual performance
indicators and technical training and development. The information gathered from this
experimental work can be used to identify the barriers that must be removed to increase the
proactive work capacity index and overall equipment efficiency (OEE).
In this chapter a correlation between these commonalities is calculated to provide the
management of this plant with direction for prioritizing the actions required to revise the
maintenance strategy. The implementation of these actions will increase the OEE of this plant.
3.2 Study design - Target Population and Study Sample
The method for collecting data on this manufacturing plant was interviews and questionnaires.
Interviews and questionnaires were used to gather plant specific results and to tap into the
specific knowledge of these employees. Questionnaires ensure that the opinion of the people
that are directly impacted on by this research is gathered. Structured interviews allowed for
direct contact with employees. The same questions were asked to all interviewees to ensure
that data collected are consistent.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 66 of 66
The engineering team reporting directly within the structure of this manufacturing plant is mainly
responsible for the day to day repairs and inspection of non specialized activities. Specialized
activities, such as preventive, predictive and condition based maintenance are performed by a
team reporting to a service provider. The service provider engineering team as well as most of
the plant personnel that were not interviewed were tasked with a questionnaire to gather valid
and reliable data.
3.3 Interviews
 This target audience for interviews consisted of the following individuals:
§ Production manager,
§ Engineering manager,
§ Maintenance artisan,
§ Production operator,
§ Maintenance operator
This group of people was selected to get the opinion of people that perform the engineering
service as well as the customer of the engineering department. A combination of the information
obtained will present a balanced reflection of the magnitude and accuracy of the current
engineering and equipment performance requirements within this plant.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 67 of 67
3.4 Interview Questions:
The aim of the questions of the interviews is to determine the need to focus on the five asset
management commonalities and to prioritize the required focus areas.
Primary question:
How efficient is the current maintenance strategy for the explosives manufacturing plant,
what must be changed and how must it be changed?
The aim was to set the scene to highlight the views of the interviewed people on the current
state of the business with specific reference to the engineering department. The primary
question was followed by the following specific and structured questions:
1. What is meant by “Asset Management”? This question really tested the person’s
understanding of the term and basic understanding of the concepts used in this study.
2. What are the skills required by people in your organization to improve equipment
reliability?
3. Can the efficiency of the maintenance crew be increased?
4. Will a change in the current maintenance strategy improve the equipment
reliability?
5. What are the typical softer issues engineering personnel are faced with?
6. What change management techniques will work in your organization?
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 68 of 68
3.5 Raw Data Collected
From the questions posed to the candidates, the following is a summary of the responses:
3.5.1 Respondent #1 – Production Manager
This respondent had a good practical understanding of asset management. He included normal,
scheduled and replacement maintenance activities as well as people in his definition of asset
management. He added the need to measure asset performance such as MTBF results of
pumps and plant availability (Visual performance measurements D).
It is his opinion that inspections are done by engineering personnel but that they do not always
know what to look for (Technical training and development E). This may be due to a lack of
equipment technical information and performance requirements (Equipment knowledge A).
He feels that there must be a focus on reliability projects and that more work can be scheduled
(Scheduled maintenance replacements C). It is his opinion that a re-organisation of manpower
is needed as the maintenance crew is unnecessary large to cope with breakdowns where a lot
of personnel are needed. He confirmed that the current spares holding philosophy is not
working and that the description of spares is not correct (Spares accuracy B).
It is his view that the plant reliability can be improved by keeping to production schedules as
prepared by the marketing personnel and by analyzing data available from history on plant
interruptions. He stated that not all the engineering managers are actively involved in the plant
activities and not all the engineering people know the effect of off-specification product on the
business. He requested alarms on remote equipment to eliminate breakdowns.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 69 of 69
3.5.2 Respondent #2 – Engineering Manager
This respondent had an excellent understanding of asset management and the need to monitor
performance and the ability to react on trends and information. He mentioned the management
and measurement of overall equipment efficiency, downtime, overtime, strategies and the out
engineering of breakdowns and equipment failures (Visual performance measurements D).
He expressed the need to re-train artisans and to develop fault finding techniques (Technical
training and development E). He also mentioned the need to get equipment “footprints” to build
up equipment performance history. Document control must be developed to make this initiative
successful.
It is his view that the plant reliability can be improved by doing planned replacements
(Scheduled maintenance replacements C), and by eliminating stop-starts. There was a
perception that the plant is not always operated within design parameters and that there is a
need to invest in new technology. He mentioned that the spares are not always correct and that
there is a need to form partnerships with spares suppliers to gain technical knowledge (Spares
accuracy B).
3.5.3 Respondent #3 – Maintenance Artisan
This artisan has the opinion that asset management is the management of all assets and those
assets can be defined as anything that can generate an income or has monetary value.
It is his opinion there is a shortage of manpower and that the load sharing per individual artisan
is not done correctly. This again referred to the planning of activities.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 70 of 70
He feels that more planned shutdowns and the co-ordination of spares (Spares accuracy B) will
improve the plant reliability. There are too many items that have no strategy and are run to
failure (Scheduled maintenance replacements C).
3.5.4  Respondent #4 – Production Operator
This operator had a good understanding of the asset management concept. He referred to asset
management as the management of assets and included maintenance, cash flow and
investment management and the improvement of the environment and safety systems.
It was his opinion that the required skills to improve the reliability of equipment must start with
task observations by qualified people that knows the process and activities performed on the
plant (Equipment knowledge A). It was his concern that such a system is in place but the
responsible observers do not spend enough time on the plant. The reliability of the equipment
can also be improved if roles and responsibilities are clearly defined and if defects are reported
immediately. Training on the process to report defects is a limiting factor (Technical training and
development E).
It is his concern that the planning of tasks during no production time is not done effectively and
that certain tasks need more than the allocated people for that task. Because the equipment in
use is big and heavy, one artisan per trade on standby, especially mechanical, is not enough to
repair breakdowns and lead to excessive downtime. It is his opinion that some of the equipment
in use has reached the end of their lifetime and need to be replaced with new and more reliable
technology (Scheduled maintenance replacements C).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 71 of 71
3.5.5 Respondent #5 – Maintenance Operator
This operator had the understanding that asset management is only about repairing equipment
that failed.
It is his opinion that planning skills must be developed. This has a specific reference to the
availability and compatibility of spares. He calls this “spares ordered are sheep and what arrives
are sheep mixed with dogs” (Spares accuracy B). This is especially dangerous as the product is
explosive and can not be contaminated by certain products such as oil. He feels that there must
be less emphasis on tertiary qualifications when people are employed and that the focus must
rather be on whether that person has the required functional talent (Technical training and
development E).
It is his opinion that the plant reliability can be improved if there are more maintenance
personnel employed to ensure that tasks performed are not done in a hurry that leads to more
failures and unplanned downtime (Scheduled maintenance replacements C). Plant operators
must be trained to do first line maintenance (Technical training and development E).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 72 of 72
TABLE 2 - Interview summary, focus areas to establish an asset management culture
Equipment
knowledge
A
Spares
accuracy
B
Scheduled
maintenance
replacements
C
Visual
performance
measurements
D
Technical
training and
development
E
Production
manager
X X X X X
Engineering
manager
X X X X X
Maintenance
artisan
X X
Production
operator
X X X
Maintenance
operator
X X X
Table 2 indicates the answers obtained from the interviews and are marked with X to indicate
the link with the commonalities of asset management.
3.6 Questionnaire population and justification
Table 3 is a summary of the response to the questionnaires. The questions all refer to a specific
common element of asset management and are referred to as commonality indicators.
The following commonalities were used in the questionnaire:
A – Questions related to equipment knowledge
B – Questions related to spares accuracy
C – Questions related to scheduled maintenance replacements
D – Questions related to visual performance measurements
E – Questions related to technical training and development
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 73 of 73
3.6.1 Validation of questionnaire
The questionnaire was send to four engineering departmental managers to validate if the
questions asked are linked to the commonality indicator as indicated in Table 3. These
engineering disciplines included:
§ Electrical engineering manager, Louw, A.B. (nick.louw@sasol.com). (11 August 2009).
RE: Questionnaire validation. E-mail to Bango, B. (lourence.bango@sasol.com).
§ Instrumentation engineering manager, Louw, A.B. (nick.louw@sasol.com). (11 August
2009). RE: Questionnaire validation. E-mail to Weber, E. (ettiene.weber@sasol.com).
§ Mechanical engineering manager, Louw, A.B. (nick.louw@sasol.com). (11 August 2009).
RE: Questionnaire validation. E-mail to Erasmus, H.J. (Hannes.Erasmus@sasol.com).
§ Planning and scheduling manager, Louw, A.B. (nick.louw@sasol.com). (11 August
2009). RE: Questionnaire validation. E-mail to Van Zyl, B. (ben1.vanzyl@sasol.com).
Correspondence received from above mentioned managers confirmed the interpretation and
question linkage to the common indicators as indicated in Table 3.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 74 of 74
Common Element A, Equipment Knowledge
The questions grouped under A have specific reference to Equipment knowledge.
Questions related to A:
§ Are repetitive equipment failures investigated? (Question 2)
§ Is root cause analysis being done to fix the problems and not only the symptoms?
(Question 6)
§ Are equipment repaired within planned time? (Question 11)
§ Are drawings and specification up to date for critical equipment? (Question 18)
Common Element B, Spares Accuracy
The questions grouped under B have specific reference to spares accuracy.
Questions related to B:
§ Is the maintenance master data regularly reviewed? (Question 9)
§ Are materials and spares available in advance for work already planned?
(Question 10)
§ Are the spares used for planned maintenance fit for service? (Question 12)
§ Is there evidence of satellite stores? (Question 13)
§ Are all spare parts adequately identified? (Question 14)
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 75 of 75
Common Element C, Scheduled Maintenance Replacements
The questions grouped under C have specific reference to scheduled maintenance
replacements.
Questions related to C:
§  Are there schedules in place to identify deterioration of equipment? (Question 3)
§ Is there commitment from management to improve equipment reliability? (Question
4)
§ Is there a long term strategic equipment replacement plan? (Question 15)
Common Element D, Visual Performance Measurements
The questions grouped under D have specific reference to visual performance measurements.
Questions related to D:
§ Is the cost of equipment downtime visually displayed to all parties involved?
(Question 16)
§ Are downtime history trended? (Question 17)
§ Are there visual indicators for product quality? (Question 19)
§ Are there visual indicators for plant availability? (Question 20)
§ Are there visual indicators for plant throughput? (Question 21)
§ Are there visual measurements for engineering personnel effectiveness? (Question
22)
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 76 of 76
Common Element E, Technical Training and Development
The questions grouped under E have specific reference to technical training and development.
Questions related to E:
§ Are operators and engineering personnel trained with the necessary equipment and
technical knowledge? (Question 1)
§ Are there departmental training barriers? (Question 5)
§ Is the investment in the training of people a focus area in your department?
(Question 7)
§ Is there a structured training programme in place for engineering personnel?
(Question 8)
§ Is there a career path designed per individual to promote personal growth? (Question
23)
§ Is there a personnel retention strategy in place? (Question 24)
§ Is there a succession planning strategy in place? (Question 25)
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 77 of 77
3.6.2 Questionnaire
TABLE 3 - Questionnaire and response per question
Question Yes No N/A Commonalityindicators
1
Are operators and engineering personnel trained
with the necessary equipment and technical
knowledge?
8 22 0 E
2 Are repetitive equipment failures investigated? 10 20 0 A
3 Are there schedules in place to identifydeterioration of equipment? 7 23 0 C
4 Is there commitment from management to improveequipment reliability? 9 21 0 C
5 Are there departmental training barriers? 12 15 3 E
6 Is root cause analysis being done to fix theproblems and not only the symptoms? 17 13 0 A
7 Is the investment in the training of people a focusarea in your department? 3 27 0 E
8 Is there a structured training programme in placefor engineering personnel? 24 6 0 E
9 Is the maintenance master data regularlyreviewed? 15 15 0 C
10 Are materials and spares available in advance forwork already planned? 9 21 0 B
11 Are equipment repaired within planned time? 2 28 0 A
12 Are the spares used for planned maintenance fit forservice? 4 26 0 B
13 Is there evidence of satellite stores? 5 25 0 B
14 Are all spare parts adequately identified? 7 23 0 B
15 Is there a long term strategic equipmentreplacement plan? 9 21 0 C
16 Is the cost of equipment downtime visuallydisplayed to all parties involved? 4 26 0 D
17 Are downtime history trended? 16 14 0 D
18 Are drawings and specification up to date forcritical equipment? 2 28 0 A
19 Are there visual indicators for product quality? 10 20 0 D
20 Are there visual indicators for plant availability? 10 20 0 D
21 Are there visual indicators for plant throughput? 10 20 0 D
22 Are there visual measurements for engineeringpersonnel effectiveness? 7 23 0 D
23 Is there a career path designed per individual topromote personal growth? 0 30 0 E
24 Is there a personnel retention strategy in place? 2 28 0 E
25 Is there a succession planning strategy in place? 4 26 0 E
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 78 of 78
3.7 Data analysis of Questionnaire
The following organizational groups were interviewed and graphically display the knowledge
base distribution and business focus of information gathered.
3.7.1 Organizational Groups
FIGURE 18 - Production Team
FIGURE 19 - Engineering Team
FIGURE 20 - Engineering Support Team (Turbo Services)
Engineering
Managers
3
Artisans
12
Technicians
2
Engineers
0
Production
Manager
1
Shift operators
9
Technicians
1
Engineers
1
Engineering support
manager
1
Artisans
20
Technicians
4
Engineers
1
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 79 of 79
The employee tenure ranges from newly employed over 20 years experience. The maximum
total of participants to the questionnaires is 55 as this is the total compliment of people as
shown in the organograms (Figure 18, 19 and 20). Fifty (50) questionnaires were distributed and
30 unspoiled and workable copies were returned for analysis. The minimum amount of workable
returned questionnaires to make statistics reliable is 80% with a margin of error at 5% is 29
(http://www.danielsoper.com, Accessed 27 May 2009). Thirty (30) returned questionnaire copies
were used.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 80 of 80
The Results are tabled below:
TABLE 4 - Summary of Response to Questionnaires
Tools Maximum compliance/ Total
number of response
Actual non-
compliance
Percentage
Non -
compliance
Equipment knowledge
A 120 19 16%
Spares accuracy
B 150 110 73%
Scheduled maintenance
replacements
C 90 65 72%
Visual performance
measurements
D 180 123 68%
Technical training and
development
E 210 154 73%
In Table 4 the maximum compliance is the maximum number of response from the
questionnaires that can indicate that this element is adequately addressed. As example element
A, equipment knowledge, has four related questions and there were 30 questionnaires. The
total number of response to this element is 4 * 30 and is 120 responses. From the 120 possible
responses a total of 19 (16%) indicated that this element is not adequately addressed. The
actual non-compliance number is a summary of the questionnaires that suggest that this
element is not adequately addressed.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 81 of 81
GRAPH 1 - Graphical representation of questionnaire response
16
73 72
68
73
0
10
20
30
40
50
60
70
80
Equipment
knowledge
Spares accuracy Scheduled
maintenance
replacements
Visual performance
measurements
Technical training
and development
Non Compliance
%
This graph can be interpreted that the workforce has adequate knowledge of the existing
equipment. There is in need for spares accuracy and a visual representation of plant
performance. The need for technical training and scheduled maintenance replacement
strategies is enforced. This graph corresponds with the results obtained from the interviews with
plant personnel that also indicated the need to replace old and unreliable equipment and they
then want training on these equipment.
The interviews and the questionnaire response indicate the need for technical training and
development. A statistical correlation must be done to determine if there is a correlation
between technical training and development and any of the other asset management elements
using the questionnaire response data. Therefore the correlation between E and A, B, C and D
must be calculated. The common element E, technical training and development, will be used
as the base of the correlation calculation.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 82 of 82
3.7.2 Correlation
(i) The correlation between Technical training and development (E) and Equipment
Knowledge (A) is:
E and A
Number of pares
of response (N)
Sum of product
of paired scores
?ea
Sum of E
scores ?e
Sum of A
scores ?a
Sum of
squared E
scores ?e²
Sum of
Squared A
scores ?a²
30 98 154 19 840 33
r = Correlation
r =           N?ea – (?e)(?a)
     ?((N?e² - (?e)²)) * ((N?a²- (?a)²))
This method is known as the Spearman correlation coefficient and the result will always be
between -1.0 and + 1.0. For a negative correlation between two items compared, the result of
this calculation will be negative. For a positive relationship the result will be positive. Technical
training and development was use as the base for the correlation calculation as this element
has a high value of non-compliance as indicated in the questionnaire response, Table 3.
Therefore there is a very low positive correlation between technical training and development
and equipment knowledge.
(ii) The correlation between Technical training and development (E) and Spares accuracy (B)
is:
Result for correlation between E and A is +0.01
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 83 of 83
E and B
Number of pares
of response (N)
Sum of product
of paired scores
?ea
Sum of E
scores ?e
Sum of A
scores ?a
Sum of
squared E
scores ?e²
Sum of
Squared A
scores ?a²
30 590 154 110 840 429
Therefore there is a strong positive correlation between technical training and development
and spares accuracy.
(iii) The correlation between Technical training and development (E) and Scheduled
maintenance replacements (C) is:
E and C
Number of pares
of response (N)
Sum of product
of paired scores
?ea
Sum of E
scores ?e
Sum of A
scores ?a
Sum of
squared E
scores ?e²
Sum of
Squared A
scores ?a²
30 347 154 65 840 166
Therefore there is a positive correlation between technical training and development and the
effect of scheduled maintenance replacements.
(iv) The correlation between Technical training and development (E) and visual performance
measurements (D) is:
E and D
Result for correlation between E and C is +0.38
Result for correlation between E and B is +0.72
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 84 of 84
Number of pares
of response (N)
Sum of product
of paired scores
?ea
Sum of E
scores ?e
Sum of A
scores ?a
Sum of
squared E
scores ?e²
Sum of
Squared A
scores ?a²
30 656 154 65 840 542
The positive correlation is between technical training and development and visual
performance measurements. There is a positive correlation between all five commonalities of
asset management.
GRAPH 2 - Statistical correlation to training and development
Statistical correlation to training and development
0.01
0.38
0.57
0.72
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Equipment knowledge Scheduled
maintenance
replacements
Visual performance
measurements
Spares accuracy
Result for correlation between E and D is +0.57
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 85 of 85
The highest value of correlation to technical training and development is spares accuracy. The
questions related to spares accuracy refer to master maintenance schedule reviews and the
availability of spares that are fit for use.
3.8 Chapter Summary (Narrative of this Dissertation)
Data was gathered from interviews and questionnaires. The minimum sample needed for an
80% confidence and a 5% margin of error was 29 people. The data from the questionnaire
response used was from 30 people. The data used can therefore be treated as valid and 80%
reliable (http://www.danielsoper.com, Accessed 27 May 2009).
The interviews indicated that there is a need to do scheduled maintenance replacements. The
people that operate and maintain equipment in this production facility need technical training
and development on the equipment in use. An investment in the technical training and
development of the engineering and production departments will be experienced by the
personnel as a commitment from management to invest in the competence of the workforce.
The questionnaire response confirmed the need for scheduled maintenance replacements.
There is a positive correlation between the five commonalities of asset management. The
highest correlation was between technical training and development and the spares accuracy.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 86 of 86
The questions related to these two elements related to the availability of spares that are fit for
use and investment in technical training and development programmes for employees.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 87 of 87
4 CONCLUSIONS AND RECOMMENDATIONS
4.1 Conclusion
The aim of this research was to identify tools to increase the plant reliability and asset
performance by using asset management principles. These tools must be applied to increase
the proactive work capacity index of the engineering department.
This research can be used by the Prillan engineering and plant managers as a guide to
measure and improve productivity and plant integrity. The suggestions made can be
implemented immediately at the explosives plant in Sasolburg. Literature review on asset
management models indicated the following similarities between the models researched:
§ Equipment knowledge
§ Spares accuracy
§ Scheduled maintenance replacements
§ Visual performance measurements
§ Training and development
4.1.1 From the interviews and questionnaires it was found that the engineering and
operational teams have a limited knowledge of asset management principles and the
application of an asset management model.
4.1.2 From the case study audit it is noted that the master data of equipment was not
updated and is incorrect. This result in equipment not returned for production within
planned time after maintenance activities are performed. Wrong and outdated
technical specifications are used to procure material and spares.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 88 of 88
4.1.3 From spares accuracy and plant integrity audit reports it is evident that the
computerized maintenance management system in use, SAP R/3, is not fully utilized
to use the data available on this system to predict failures and the proactive work
capacity index.
4.1.4 There is no evidence of career paths, succession planning and retention strategies.
There is a need to develop balanced scorecards to align the individual and business
strategies. The need for technical training and development is rated as the highest
need and can be interpreted that they need more quality and less generic training.
They feel that they can make a better contribution towards the business success and
need more stretched targets.
4.1.5 Limited key performance measures for plant and equipment performance are in
place and therefore the plant performance cannot be properly measured and
managed.
4.1.6 Not all employees understand their performance targets as some targets and
objectives are not specific, measurable or attainable [60]. Methods to measure the
efficiency of the engineering planning and execution activities are not identified.
Roles and responsibilities are not clearly defined.
4.1.7 There is unhappiness within the engineering and production workforce of the Prillan
plant.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 89 of 89
4.1.8 The correlation between the need for technical training and development and the
spares accuracy indicates the need for equipment specific training.
4.2 Recommendations
4.2.1 The overall equipment efficiency (OEE) must be measured and employees must be
trained on the possible six losses and the influence of all activities on this measurement.
The overall equipment efficiency must be measured daily and must include:
Quality: Actual output vs. good output to indicate scrap and rework
Plant performance: Target output vs. actual output to indicate reduced production speed
and stoppages
Availability: Operating time vs. actual running time to indicate production
schedule accuracy and failures
4.2.2 Frequent work execution reviews must be implemented. This creates the opportunity to
review and eliminate future breakdowns and to update the master data used to
determine standard time and required spares for engineering activities. The updating of
the master data will reduce the need for satellite stores as spares used will be fit for
service. These reviews can be used as a tool to monitor the deterioration of equipment
and to do accurate planning and scheduling.
4.2.3 SAP training of the planners and the management of this plant will ensure that
functionalities such as user status are used and understood.
4.2.4 It is recommended that the engineering and operational teams of the Prillan explosives
manufacturing plant be trained on the meaning and application of asset management
principles. This training must include planned maintenance requirements. Competence
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 90 of 90
profiles must be developed per engineering discipline and used to establish specific and
individual training and development needs. These training and development needs must
be formulated in a matrix and must be included in the balanced scorecards of the
individuals. The knowledge gained from this technical training and development plan
must be used to update technical drawing, procedures and equipment specification in
the master data.
4.2.5 It is recommended that the visual performance indicators of the engineering team
already in use be trended weekly and that action plans with objectives and targets must
be implemented to ensure continuous improvement. The existing indicators include %
emergency work, % urgent work, % scheduled tasks completed, capacity planning and
the backlog status. The mean time between failures (MTBF) measurement of critical
pumps is an existing measurement.
4.2.6 The management of this plant must eliminate dissatisfaction of employees by ensuring
that salaries, working conditions and other job context factors are reasonable and
appropriate. There is a need for the development of career paths for all employees. The
management of this plant must enhance employee motivation by providing opportunities
for growth, achievement and responsibility.
4.2.7 The use of the user status on the work orders will have the benefit of financial control
and the effective management of service providers. The updating of the user status
requires discipline and this must be enforced by the plant management.
4.2.8 A change management model must be implemented and this model must be logical and
properly planned. The model used must include a clear description of the reason for
change, the desired outcome and an action plan.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 91 of 91
4.2.9 DILO’s on all the engineering functions must be done regularly. This must be used as a
tool to eliminate unproductive time and to increase wrench time and the proactive work
capacity index. It is also a tool to identify duplication of activities and to optimize the
engineering organizational structure.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 92 of 92
Action plan
The following action plan is recommended:
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 93 of 93
4.3 Verification of recommendations
The recommendations of this research were tested with the current engineering manager,
Prillan, Sasol Nitro (Interview with T. Böhlander, 12 August 2009). The reason for this
verification interview of recommendations was to determine if the results of this research is a
true reflection to the opinion of the engineering manager. This interview was used to determine
if any of these recommendations were implemented during the time of this research and what
effect it had on the proactive work capacity and equipment reliability and performance.
4.3.1 The measurement of overall equipment efficiency (OEE):
This measurement can be used to increase the proactive work capacity index and plant
reliability and performance. This will only be done if individuals can associate themselves with
problems identified that influence the six possible losses and are willing to eliminate the
problems identified. There are no documented objectives and targets for people for actions
needed on influences on the overall equipment efficiency of this manufacturing plant. The
interviewee stated that the plant throughput is at times reduced to eliminate stop-starts of this
plant.
4.3.2 Weekly work execution reviews:
Reviews of engineering activities are conducted and these sessions can be used more
productively to identify issues that must be focussed on.
4.3.3 SAP training:
The planning department was trained in the use of SAP and the value of data within this system
that can be used to measure the engineering team efficiency. The training of other engineering
personnel with the use and recovery of data within SAP will add value to the engineering
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 94 of 94
efficiency. This training will reduce time spend by managers to gather and display data on the
losses that influence the OEE and the proactive work capacity index of that plant.
4.3.4 Technical training and development:
There are no documented competence profiles for the engineering team and succession
planning is not officially identified. It is the opinion of the engineering manager that artisans must
be competent to perform engineering activities if they are qualified in a trade.
4.3.5 Existing visual performance measures:
The interviewee stated that the existing performance measures indicate an improvement over
the time that these measures are in use. This increase in performance is the result of better
production online planning. There is however a need to do better plant planning by the logistics
department. He stated that he does not agree with the magnitude of the problem stated with
regards to the accuracy of spares and the master data. He indicated that there is a need to
increase the reliability of the support function that purchase and manage inventory. In his view
the problems are:
§ Spares are delivered at the wrong locations
§ Lack of technical knowledge in the purchasing and supply management department
§ The inventory database is not updated
4.3.6 Dissatisfaction of employees:
The manager interviewed has the opinion that in any organization there will be people that are
not happy for some reasons. He mentioned the need for participation of all employees to work
towards the business strategy. The motivation of employees to achieve the departmental and
business strategy is lacking. No change model is in place and must be developed with the co-
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 95 of 95
operation of all individuals involved. He stated that there is a need to design and implement a
change management program.
4.3.7 User status
It is the view of the interviewee that user status measurement is a function of the financial
department. This has specific reference to late or no invoicing and financial management.
4.4 Validation of results
This research was not validated due it not being a requirement and some of the tools presented
in this research are in the process of implementation. For this reason there are no results
available.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 96 of 96
4.5 Research value
The influence of change management to a new strategy is highlighted to the plant manager.
This also reveals to the manager the importance to revise strategies and that the measurement
of services rendered is important. A holistic view towards a maintenance strategy must be
followed to include accurate inventory and master data, and up to date acceptable maintenance
strategies to ensure a profitable, safe and reliable manufacturing plant. The planning, execution
and review sequence of maintenance activities are explained and measurements of plant and
personnel performance are proposed, such as the use of user status per task. This research
provides a guideline to engineering and plant managers on how to develop a maintenance
strategy and methods and tools that can be used to evaluate and continuously measure the
effectiveness of the implementation of such a strategy.
4.6 Achievements and Shortcomings
A larger group could have been interviewed to obtain raw data. This is a shortcoming and can
be improved on if the student networks with more managers and maintenance personnel
operating similar plants in the world. For this research a questionnaire was developed to obtain
more raw data. Room for improvement and other opportunities for this research study include
the analysis of current equipment reliability and history. Equipment age analysis could be done
to confirm interview responses. The influence of existing personnel training and development
programs and competence on the plant performance and safety statistics would have added
value. This research achieved the objective to identify tools that can be used to manage and
trend equipment and engineering performance. This can be used as a dashboard to track and
trend the performance of the explosives manufacturing plant to entrench an asset management
culture.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 97 of 97
4.7 Future Research
Future research suggestions:
(A) Methods to close the gap between the projected proactive work capacity index as
indicated in Figure 2.
(B) The design and application of balanced scorecards to ensure alignment of all departments
with business strategy.
(C) First line maintenance performed by operations personnel, the effect and training needed.
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 98 of 98
APPENDIX A - REFERENCES
1. http://www.investorwords.com (Accessed 15 February, 2006)
2. http://businessdictionary.com (Accessed 18 February, 2006)
3. The Collins English Dictionary, 1986, Second edition, London: Collins
4. The heritage illustrated dictionary of the English language, 1973, International edition,
New York: American Heritage Publication Company
5. http://en.wikipedia.org (Accessed 20 March, 2006)
6. Levitt J, 2005, Managing Factory Maintenance, Second edition, New York: Industrial
Press Inc.
7. Sasol Nitro MD presentation, 23 October 2003
8. AIA, 2006, Mechanical integrity audit
9. Smit F, 2006, Legal compliance audit
10. Louw W, 2007, Downtime report, SAP R/3, plant 4410
11. Turbo Services, 2006, Asset Management report on pump MTBF
12. Hedding R, 2004, SAMI™
13. http://www.sasol.com (Accessed 9 November, 2006)
14. http://www.nps.gov (Accessed 19 January, 2007)
15. http://www.wipo.int (Accessed 11 February, 2008)
16. http://www.dynonobel.com (Accessed 17 May, 2008)
17. http://www.agrium.com (Accessed 17 May, 2008)
18. Gent C, 2005, Prillan plant induction manual
19. http://www.alibaba.com (Accessed 19 January, 2007)
20. Mitchell J.S, 2002, Physical asset management handbook, Edition 3, ISBN 0-9717945-0-
2. Houston: Clarion Technical Publishers
 21. http://www.emersonprocessxperts.com (Accessed 19 May, 2008)
22. Lochner T, 2007, RCM course
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 99 of 99
23. Brand Marius, 2004, Sasol Synfuels
24. Pretorius H, 2007, Maintenance Africa
25. Peterson S. B, 2004, SAMI Times
26. http://reference forbusiness.com (Accessed 19 May, 2008)
27. http://oeetoolkit.nl (Accessed 11 January, 2009)
28. Sasol Nitro year report, 2007
29. http://www.findarticles.com (Accessed 12 January, 2009)
30. http://www.maintenanceresources.com (Accessed 14 January, 2009)
31. http://samicorp.com (Accessed 21 February, 2006)
32. Oosthuyzen P, 2006, Spares audit
33. Harrington J.H, 2004, The five pillars of organizational excellence, Publisher: Emerald
Group Publishing Limited
34. Kelly A, 2001, Maintenance organizations and systems, Business-centered
maintenance, Publisher: Butterworth-heinemann
35. http://www.Ice.com (Accessed 27 July, 2006)
36. MAC Consulting, 2008, the first 90 days
37. Herzberg F, 1993, The motivation to work, Edition 10, Publisher: John Wiley & Sons Inc.
38. Daniels AC, 2004, Performance management: Changing behaviour that drives
organizational effectiveness, Edition 4, publisher: Aubrey Daniels International
39. Thomas S.J, 2005, Improving maintenance and reliability through cultural change,
Publisher: Industrial Press
40. Army D, 2006, The SAMI Times, Volume 7
41. http://www.cultureandrecreation.gov.au (Accessed 20 January, 2009)
42. http://www.franklin.com (Accessed 3 August, 2008)
43. http://www.eventhelix.com (Accessed 20 January, 2009)
44. Smit A, Sasol, 2008, Sasol Nitro financial department
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 100 of 100
45. Pathak R.C, 2004, Flexibility – Thinking shift for organizational excellence, Publisher:
Tata Mcgraw Hill Publishing Company
46. Steyn H, 2003, Project management, a multi-disciplinary approach, Edition 5, Pretoria:
FPM Publishing
47. http://www.maaw.info.lifecyclecosting.com (Accessed 11 November, 2008)
48. http://www.idcon.com (Accessed 11 November, 2008)
49. http://www.kema.com (Accessed 12 November, 2008)
50. http://www.rvarmstrong.com (Accessed 12 November, 2008)
51. Senge P.M, 1994, The Fifth Discipline, The art and practice of the learning organization,
New York: Doubleday
52. Senge P.M, 1997, The Fifth Discipline Field book, London: Nicholas Brealey Publishing
53. Smit A, 2007, Sasol Nitro financial report
54. Nell K, 2007, Potchefstroom Business School, Project management
55. Peterson S.B, 2002, Defining Asset management, SAMI
56. Hutchins D, 1995, Just In Time, Publisher: Jaico Publishing House
57. Meador R. J, 1995, Maintaining the Solutions to Operations and Maintenance
Improvement, Publisher: Trade Press Publishing Corporation
58. Higgens L.R, 2002, Maintenance Engineering Handbook, Edition 4, New York: Mcgraw
Hill
59. Wichers J.H, 2006, Successfully Re-Engineering the Maintenance Function to Reflect
Corporate Goals
60. Smit P.J and Cronje G.J, 2003, Management Principles, A contemprorary Edition for
Africa, Edition 3, Cape Town: Corporate Research Foundation Publishing
61. Sutermeister R,1976, People and Productivity, Edition 3, New York: Mcgraw Hill
62. http://www.12manage.com (Accessed 27 April, 2009)
63. http://www.pubmedcontrol.nih.gov (Accessed 15 August, 2008)
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 101 of 101
64. http://www.danielsoper.com (Accessed 27 May, 2009)
65. http://www.wessa.net (Accessed 11 January, 2008)
66. http://www.famousquotesandauthors.com (Accessed 12 January, 2008)
67. SAMI Inc, 2005, Prillan Explosives Plant Asset Healthcare Case Study
APPENDIX B – ABBREVIATIONS, ACRONYMS AND DEFINITIONS
TERM DESCRIPTION
CMMS Computerized Maintenance Management System
DILO Day in the life of
EAM Enterprise Asset Management
FMEA Failure Mode and Effect Analysis
JIT Just In Time
OEE Overall Equipment Efficiency
pH Measure of the acidity or basicity of a solution
PPAN Porous Prilled Ammonium Nitrate
PWCi Proactive Work Capacity index
RACI Responsible, Accountable, Consulted and Informed
RBI Risk Based Inspections
RCFA Root Cause Failure Analysis
RCM Reliability Centered Maintenance
SAMI Strategic Asset Management Inc
SAP-PM SAP Plant Maintenance module
RAM Reliability, Availability and Maintainability
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 102 of 102
KEYWORDS
Enterprise Asset Management
Balanced scorecard
Career paths
Equipment knowledge
Maintenance strategies
Master data
Overall Equipment Efficiency
Proactive work capacity index
Scheduled maintenance replacements
Spares accuracy
Training and development
User status
Visual performance measures
DEFINITION OF TERMS
Shareholder value
The value a shareholder is able to obtain from his/her investment in a company is referred to as
Shareholder value. This is made up of capital gains, dividend payments, and proceeds from
buyback programs and any other payouts that a firm might make to a shareholder
(http://www.investwords.com, Accessed 15 February, 2006).
Motivation
Internal and external factors that stimulate desire and energy in people to be continually
interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a
goal. Motivation is the energizer of behaviour and mother of all action. It results from the
interactions among conscious and unconscious factors such as the intensity of desire or need,
incentive or reward value of the goal, and expectations of the individual and of his or her
significant others. The desire to do. Interest or drive (The Collins dictionary, 1986).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 103 of 103
Organization
It is a number of people or groups having specific responsibilities and united for some purpose
or work (The heritage illustrated dictionary of the English language, 1973).
Management
Management" (from Old French ménagement "the art of conducting, directing", from Latin manu
agere "to lead by the hand") characterises the process of leading and directing all or part of an
organization, often a business, through the deployment and manipulation of resources (human,
financial, material, intellectual or intangible), (http://www.wikipedia.org, Accessed 20 March
2006).
Skill
Special ability in a task acquired by training (The Collins dictionary, 1986).
Planning
It is the process of setting goals, developing strategies, and outlining tasks and schedules to
accomplish the goals (http://www.investwords.com, Accessed 15 February, 2006).
Asset
Any item of economic value owned by an individual or corporation, especially that which could
be converted to cash. Examples are cash, securities, accounts receivable, inventory, office
equipment, real estate, a car, and other property. On a balance sheet, assets are equal to the
sum of liabilities, common stock, preferred stock, and retained earnings.
Anything of value or useful (The Collins dictionary, 1986).
Tools for the revision of a maintenance strategy for an explosives manufacturing plant, using
asset management principles
Dissertation: A.B. Louw, May 2009 page 104 of 104
Reliability Centered Maintenance (RCM)
A maintenance strategy designed to uncover the causes and consequences of breakdowns.
RCM sets up priorities by the severity of the consequences. Preventative maintenance tasks
and redesign are directed specifically at those failure modes that have the worst consequences.
RCM is a procedure for uncovering and overcoming important failures (Levitt J, 2005:xxi).
Balanced scorecard
The balanced scorecard is a management philosophy, management system, and method of
measuring compliance to objectives. It is a top-down method to translate an organization’s
mission and strategy into tangible linkages, interrelationships, specific activities and measures
necessary for successful implementation (Mitchell J.S, 2002:80).
Overall equipment efficiency (OEE)
Overall equipment efficiency (OEE) is a normalized quantity representing net production yield
made up of three percentages: availability, production rate and quality – all as a percentage of
objective (Mitchell J.S, 2002:87)