(The second in the series, “The Advantages of Managing Multiple Operations with CMMS”)
Of all the costs associated with compromised maintenance systems, the most heinous are the loss of human health and life. Industrial accidents have consequences that go far beyond the immediate cost to hospitalize an injured employee. Morale, productivity, and credibility are egregiously damaged when personnel are injured on the job. Ensuring that maintenance equipment is continuously properly maintained can reduce the likelihood of an equipment-related accident, or worse, fatality.
The Stakes of an Implemented Integrated EAM
Whether an organization is a one-site operation or has facilities around the globe, it is governed by safety regulations from the federal government and the state created to protect personnel and surrounding communities from health hazards. To support optimal safety conditions at each facility, companies can utilize a rigorous system of checks and balances that make maintaining inventory and equipment streamlined and intuitive. Through an integrated system for managing your maintenance inventory and equipment and keeping it up to code, you make an investment in an accident-free workplace that can only return compounded dividends over time.
Empowering all end-users with continuous, real-time updates on what needs to be serviced and any safety threats requiring action (e.g., gas leaks), can be automated through a vigorous CMMS.
Cardinal Glass: An Example of Excellence
In 2008 Cardinal Glass incurred three serious accidents in 30 days, prompting management to take a hard look at the factors creating an environment conducive to accidents and mechanical failure. The Coating and Tempering Divisions, where the accidents had occurred, were riddled with infrastructural issues: reports were shared but not read, downtime was at 15%, maintenance history was dependent on daily memory, there was no maintenance or inventory management system in place, and a “run to failure” mindset was the norm. Both divisions had been unprofitable for several consecutive years.
They set strategic goals to measure demonstrative improvement:
· Improve safety measures
· Change mindset from “run to failure” to “predictive”
· Bring uptime to 96%
· Use data to support decisions
· Continuously measure and improve
· Commit to ongoing daily and monthly training
Towards these targets they designed a multi-tiered program in which CMMS was integral for its’ success. The results were dazzling:
· Downtime was reduced to 0.7% in the years between 2008 and 2011
· Labor costs were reduced by 43%
· Production was increased by 40%
· Overtime was reduced by 60%
· Both divisions operated at a 45% profit
· Downtime costs went from over $26K in 2008 to a little over $3K in 2011
Cardinal set a goal of 1,000 days without an accident, but achieved 1,212, as a direct result of using their new CMMS to support a new culture of safety on the job.
Mission Critical Industries Depend on EAM
For mission-critical industries like bio-technology, nuclear power, and oil and gas, CMMS is used to support a “zero accident tolerance” policy. Consider the gas leak of 2010 in San Bruno, California, which raised three dozen homes and killed eight people; subsequent analysis revealed that substandard pipes, long overdue for replacement, were the chief culprits, demonstrating the dire consequences of not having proper preventative maintenance software in place or fully utilized. These industries seek to increase uptime and efficiency, like any other, but given the stakes involved are numerous lives and substantial private property, the drive to match industry best practices has to be tempered by the premium of safety at all costs.
Towards that end, systems such as CMMS that enable energy operations to more closely maintain control over asset integrity are vital.
This is the second in a series on The Advantages of Managing Multiple Operations with CMMS.