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The 2024 forecasts for the oil and gas industry include some conflicting speculation about supply and demand. It’s leading to confusion for U.S. companies… not to mention dismay as people everywhere scowl at the gas pump when they’re filling up.
Reuters reported in August that OPEC+ expects to see supply cuts that impact oil inventories, which will drive prices potentially higher than the $88 per barrel of crude in August 2023, the highest price since January. OPEC+ is confident, however, that demand will rise markedly.
But… the International Energy Association (IEA) doesn’t quite agree with those numbers, noting that the fluctuating economy will impact manufacturing businesses, and coupled with the tsunami of electric vehicles, will shake out in the form of falling demand.
Those clear-as-mud speculations boil down to one thing: Uncertainty is ahead for an industry that has already had its fair share.
All industries have been weathering uncertainty for the past few years, starting with the pandemic and, once we thought we had that handled, continuing with a shaky economy, a cried-wolf recession and ever-rising interest rates, putting consumer confidence on shifting sands.
At USC Consulting Group, we specialize in helping companies through uncertain times by optimizing their processes, becoming as efficient as possible and positioning themselves on solid ground to handle whatever is coming down the pike.
Preparing the Oil & Gas industry for an uncertain 2024
Here are seven ways the oil and gas industry can shore up for an uncertain 2024. Though separate goals, all work together to make companies as efficient and productive as they can be.
1. Reducing costs
Is there ever a year when companies in any industry shouldn’t focus on reducing costs? That’s a given, 24/7/365. But, it’s especially important for oil and gas going into 2024, when the economy continues to be volatile and uncertain. Buttoning up costs is a good strategy for the industry to get through that storm. It’s about optimizing production processes in the field and reducing extraction costs in order to offset costs involved in finding new sites.
2. Managing supply chain risks
After the supply chain bottlenecks most every industry experienced during the pandemic, it’s vital to mitigate supply chain risks. It’s a burr under the saddle of the entire industry. Fluctuating costs and supply uncertainty can impact the entire operation. Oil and gas companies need a little breathing room, predictable lead times and a more secure footing going into next year. Securing your supply chain is one way to achieve that. It can help avoid the market roller coaster we’ve seen in the recent past and may help ease pressure from inflation as well. The bonus here is, it can save about 15% on costs.
Developing a solid risk assessment plan that takes into consideration what’s happening at the supplier level will secure your supply chain and prevent any surprise shortages.
3. Focusing on yield
Maximizing yield, like reducing costs and managing supply chain risks, brings solid benefits in any economy, but especially now. It means making sure extraction techniques are as efficient as possible, utilizing methods like Enhanced Oil Recovery to extract more oil from reservoirs that may have been underutilized, managing those reservoirs carefully and by the numbers, and making sure employees across all facilities are on the same page.
4. Closing the how-why gap
In an organization the front line often does not understand the “why,” and the executives don’t understand the “how.” It means, the top brass do not fully understand how the job gets done and the frontline workers don’t fully understand why the job needs to be done. Closing that “how-why gap” is critical for optimal performance all the way up and down the organizational food chain.
5. Standardizing daily and weekly instructions for front-line managers
Going hand in hand with closing that how-why gap is increased training for managers. Many industries like oil and gas rely on frontline training, but some people would say that supervisors need even more. Training trickles down, but efficiency does, too. And the key to that is making sure everyone, across all departments and facilities, is on the same page, doing the job the same way, with a standard set of operating procedures. It’s a vital component for optimal efficiency.
6. Consolidation and acquisition = increased need for communication
New talent, ideas and perspectives can breathe life into a company. Mergers and acquisitions in the oil and gas industry exploded in Q2 2023, according to Enverus Intelligence Research. After $8 billion M&A in Q1 2023 (nothing to sneeze at) we saw $24b in Q2. It’s in line with increased consolidations, as reported by Forbes, with the goal of lowering costs, raising inventory and in the end, boosting investor returns.
All of that M&A activity can put a strain on employees of affected companies. Especially during this flurry of M&A, it’s important to find solutions to help them with the complexities of combining two “legacy” groups, which have their unique set of standards. Finding ways to combine both schools of thought into one set of “best practices” after a merger is paramount to its success. To learn more about it, read our recent case study: “Creating Harmony When Merging Two Companies.”
7. Performing scheduled maintenance
The goal is zero unplanned downtime. Pros in the industry know that’s not so easy to achieve. It starts with asset monitoring, including wells but also pipelines, processing facilities and other equipment to maximize operational efficiency. Scheduling downtime for maintenance ensures a shutdown, but it also ensures you’ll know when it’s coming and can plan accordingly. Unplanned failures or glitches can be costly problems at best but dangerous threats to workers at worst.
At USC Consulting Group, we’ve been working with the oil and gas industry for decades. If you’re interested in optimizing your company’s efficiency in this uncertain economy, give us a call.
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Are you always putting out fires? Not in the literal sense, of course. We’re talking about operational problems that pop up at the most inconvenient times. Once you take care of one issue, two more seem to appear in its place. Issues such as:
- Machines break down
- Workers calling in sick
- Human errors
- Backups and bottlenecks
- Inventory uncertainty
If you’re busy troubleshooting today, it’s hard to focus on improving tomorrow. Opportunities for growth can be missed.
Get ahead of problems before they catch fire by watching this video:
At USC Consulting Group, we’ve been helping clients for over 50 years to implement strong Management Operating Systems that assist them with breaking that firefighter mentality.
The best management operating systems center around four main components:
A well-designed MOS will have your company operating like a well-oiled machine, making your bottom line stronger and your operations more efficient.
So put down the fire extinguisher and enhance your management operating system today by contacting USC Consulting Group.
Learn more about the benefits of an effective MOS in our article How Can A Management Operating System Help Your Organization?
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After 50+ years in the operations management consulting business, USC has become skilled detectives at finding hidden opportunities in our clients’ operations. Here’s the evidence on how we uncover more throughput and production in your operations:
The key to doing more with your existing assets is uncovering opportunities for efficiency and increased productivity. Things you might not even see that are right under your nose.
- Excessive cycle time
- Excessive machine changeover time
- Operational bottlenecks
That’s where our expertise comes in. We often find them by looking at issues that are accepted in the workplace as “that’s the way we’ve always done it.”
We discover breakthroughs by asking questions.
- Where is the bottleneck?
- Is it technical?
- Is it tactical?
If it’s about technology, or your assets, maybe it’s time to bring in the engineers to improve on your machines’ functions.
If it’s tactical, we analyze your processes to find areas of improvement.
Follow the footsteps in the accompanying infographic as Detective Payne points out the areas of interests you want to focus your magnifying glass on.
If you’d like to catch the “thief” stealing efficiency in your operations, contact us today. We’ll put our expert detective work to use for you.
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Do you know what’s preventing your operations from being more efficient? Find the clues that will tell you where to look. The key to doing more with your existing assets is uncovering hidden opportunities for efficiency and increased productivity. Things you might not even see that are right under your nose.
That’s where USC Consulting Group’s expertise comes in. After 50+ years, we’ve become skilled detectives. Uncovering those hidden opportunities is our specialty. We often find them by looking at issues that are accepted in the workplace as “That’s the way we’ve always done it.”
We uncover hidden efficiencies by asking questions:
- Where is the bottleneck?
- Is it technical?
- Is it tactical?
If it’s about technology, or your assets, maybe it’s time to bring in the engineers to improve on your machines’ functions.
If it’s tactical, we look at your processes to find areas of improvement.
For more on how the subject matter experts at USC Consulting Group detect inefficiencies in our clients’ operations, watch as Detective Payne points the way:
If you’d like to find more efficiency in your operations, get in touch. We’ll put our expert detective work to use for you.
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What do you do when your demand is greater than your ability to meet it? This is one of the big issues some of our clients in the metals industry are facing these days as increased demand is matching or exceeding what is believed to be their capacity. Facing that situation, what can be done other than turning down sales?
Our customers who are dealing with demand management problems tend to come to us when they’re mired in what they believe is a lesser-of-two-evils choice. An option can be to increase capacity by investing in new capital assets but this involves investing millions of dollars and will demand be there given the long lead time for those assets. A possible second option is to increase capacity by expanding the hours of operation either by hiring additional staff or through overtime. Again, this leads to an increase in costs, especially if hiring additional staff also has a lead time as employees are hired and trained. So they come to us looking for a third option: Doing more with the assets they already have.
At USC Consulting Group, that’s our wheelhouse. It’s what we’ve been doing for companies for over 50 years.
We’re not about telling our clients to throw out machinery that’s working pretty well, open their wallets, and upgrade to state-of-the-art technology. Most of the time, that’s a huge expense that’s just not necessary. Instead, we do the hard work of rolling up our sleeves and finding hidden opportunities for improvements with your current assets. It’s about doing more with what you have and overcoming demand management problems.
What are hidden opportunities, exactly? They are efficiencies in your operation that you’re not aware of. We find them by first listening to you describe your issues, bottlenecks and stumbling blocks. Then, we look at your existing management operating system and standard work procedures like a detective, looking for ways to kick your efficiency up a notch. We find the opportunities that you may not see. Nine times out of ten, we find them by looking at issues that are generally accepted as “just the way things are.” A few examples:
- Excessive cycle time. Cycle time to produce a part could be reduced by redistributing the work between cycles so that more of the activities take place in parallel vs. in series.
- Excessive time for changeovers on a machine. There are activities that could be started and even completed before the changeover starts.
We start the process of finding hidden opportunities by finding the answers to a few questions.
- Where is the problem?
- Is it technical or tactical?
- Is it feasible?
If it’s technical, maybe it’s time to bring in the engineers to improve on your machines’ functions. If it’s tactical, we look at your processes, the way you’re using those machines, to find those hidden efficiencies.
We also take a hard look at the feasibility of your goal. If you’re producing 900 tons per day and the demand is 1,100, can we reasonably get you there? Sometimes the answer is no. Sometimes we can split the difference and get you close to the goal. Sometimes we can hit that goal and then some.
Why frontline buy-in is essential
At times, our recommendations for new efficiencies in your time-tested processes might ruffle some feathers, especially those of your crews on the frontlines, men and women who are doing those jobs for a living. That’s why we involve them from the beginning. We don’t swoop in at the end of our process and hand them a playbook on how to do their jobs better. Instead, they help us write that playbook. Your frontline employees’ buy-in is crucial to the success of any changes you want to make.
Frankly, working with your frontline employees makes our job easier, too. They give us the lowdown on what’s happening in your operation. We hear what’s going right, and at times, what’s going wrong. They often can see what the problems are, but not know how to fix them. We can get the single source of truth from your frontlines and implement plans to fix the issues and improve productivity. It’s crucial to finding where efficiencies can happen.
To read more about how crucial frontline buy-in is to the process, read our blog, Why Getting Buy-in from Frontline Employees is Key.
At USCCG, we pride ourselves in finding hidden opportunities for efficiencies that will help smooth out bottlenecks and allow our customers to meet growing demand with their current assets. Please get in touch if you’d like to find out more.
For a deeper look at demand management problems and other challenges and how we find hidden opportunities in Metals manufacturing operations, download our free eBook: “Challenges For The Metals Industry: How USC Consulting Group Can Help”
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A proper Asset Performance Management (APM) plan ensures that your critical revenue-producing assets operate smoothly, efficiently, and at or near their rated capacity.
Asset Performance Management is the broad, systematic planning and control of a physical resource throughout its operating life. It includes the specification, design, construction, operation, maintenance, modification, and ultimately, disposal. Its principles apply to any industry with mission-critical assets, and is best implemented with support from the top-down and bottom-up. The entire organization should be involved, and supportive to ensure that it is executed properly.
Methodologies used in APM
- Asset Reliability – The process of ensuring that assets continue to do what they are needed to do, when they are needed to do it.
- Reliability-centered Maintenance (RCM) – Used to determine the activities necessary for the asset to operate properly by focusing on maintenance tasks that mitigate against the consequences of failure.
- Maintenance Management – Adherence to a benchmark of world-class maintenance standards and practices.
Key Performance Indicators (KPIs) and Enabling Technology
A vital step in implementing an APM plan is establishing, tracking, and analyzing KPIs. This is what takes a maintenance plan from reactive to proactive. The close management of leading and lagging Key Performance Indicators helps increase the likelihood of driving measureable results without significant capital investment.
Important KPIs include:
- % of planned maintenance work, and completed.
- % of unplanned/emergency maintenance work.
- Proactive work as % of planned maintenance work.
- Actual maintenance hours vs. planning estimate.
- Overall equipment effectiveness.
Having the right technology tools are needed to measure and analyze this data. USC Consulting Group has helped clients optimize their existing tools or install computerized maintenance management systems (CMMS), ERP systems, and USC’s own proprietary Lean Information Control System (LINCS) to ensure that this data is used effectively.
Benefits of Asset Performance Management
In addition to increased uptime, shorter turnaround times, greater throughput and lower maintenance costs, organizations have seen improvements in their EBITDA by 15-25%.
Learn more about how APM can improve the performance of your revenue-producing assets by downloading our eBook Asset Management: The Rise of Reliability.
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One of the most effective methods of analyzing operational breakdowns is to conduct a Root Cause Analysis (RCA). Some of the data needed in order to drive the analysis includes all of the unplanned failure work orders, which component required repair for each work order, and how long each work order took to complete. This analysis can be conducted on each individual piece of equipment, an entire fleet of the same type of equipment, an entire fleet of the same piece of equipment purchased in the same year, or the entire fleet as a whole. Each Computerized Maintenance Management Software (CMMS) will calculate these values in its own way. The more specific to each individual piece of equipment, the better; however, total fleet size and time constraints may not allow for each piece of equipment to be analyzed on an individual basis.
Frequency vs Severity
The objective of the RCA is to select a failure that is having a substantial impact on the equipment in question. This can either be based on frequency or severity. Frequency being the amount of times the failure occurs within a given period. Severity being the cumulative time it takes to make the repairs within a given time period. Ideally, one or more types of failures may have a high frequency and a high severity. Collecting this data alone may uncover some surprising results. For example, some quick and easy repairs that do not take long can add up very quickly if the frequency is high enough. This can come as a shock when the total time spent on this one repair is tabulated.
Take, for example, the case of the Dead Battery (Figure 2). This repair on average may only take between half an hour and an hour for a mechanic to complete, including mostly drive time and a quick battery boost. It is such a quick, straight forward solution that it may not have captured much of management’s attention. Nevertheless, when you consider how many times a dead battery has occurred in the last three months and total the hours involved in correcting this issue, it may show up as the number two consumer of the maintenance department’s human resources (mechanics labor hours). Management must be critical at this point of statements such “that’s just the work environment.” Questions need to be asked about what can be done to improve the failures that drain the greatest amount of the department’s resources.
An important element to consider is that there are always multiple root causes for any given failure. The intent of conducting the RCA is to uncover all of the individual root causes that may lead to the failure of the component in question. The true root causes are rarely uncovered at the first layer of asking “Why?” for the first time. Each answer provided must then be analyzed all over again, and this process must continue until all avenues have been explored and the group has arrived at a tangible end. It will often take five “whys” to uncover the true root cause of an issue. Once the session has uncovered all of the possible root causes of the failure in question, a solution must then be presented to address each one individually.
These solutions come in the form of action items which are reviewed at the end of the meeting by the management team, responsibility is assigned, expected completion dates are provided, and the method in which the solution will be accomplished is discussed.
After conducting a Root Cause Analysis, the management team will have a list of action items. All of which will have varying impacts on the equipment’s reliability. It is important that the management team takes the time to assess each item on two main criteria: how easy the item will be to complete and to what extent its effect is predicted to have on the equipment. Combining these two scales will provide a strong basis for prioritizing action items and deciding what to tackle first. The management team should begin with the high impact, easy to implement action items and leave the low impact, hard to implement action items for last.
RCA Action Item Generation
When considering what corrective actions can be taken in order to solve the root causes of the failure in question, keep in mind the areas or touch points where changes can be made to affect the equipment. Again, these can be simplified as:
► The Operator (how the equipment is used) – Change the process in which the equipment is used. Sometimes an operator is using equipment incorrectly or in a harmful way without knowing it. Added training will often improve these issues. It is common for operators to be required to inspect all equipment before use. This usually occurs in the form of a pre-use checklist. This checklist can be modified to draw the operator’s attention to certain areas of the equipment in which wear can be seen. Noting this wear, and informing maintenance, can prevent the component from failing during use.
► The Mechanic (how the equipment is repaired) – Sometimes the method in which repairs are made inside or outside of the shop will affect the way the equipment operates. If the equipment’s use is required at the time of breakdown, a mechanic may provide a “patch” to ensure it runs immediately. These “patches” however, will not always last until the next service date for the piece of equipment.
► The Service (how the cyclical services are conducted) – Consider the actual activities performed on the equipment during its regular preventative maintenance service. Can these activities be changed or include more that would prevent the root cause in question? Perhaps a specific component that is failing often needs to be cleaned during the service or inspected specifically for signs of wear.
► The Design (how the equipment is designed or modified) – In underground mining, equipment modifications are often required by law in North America before the equipment can even be commissioned. These modifications can vary depending on the type of underground mine. It is important to understand what impact these modifications have on the operation of the equipment. In the Dead Battery case example, maybe the equipment in question was outfitted with additional lights to make it safer to drive underground where it is pitch black. The addition of these extra lights places a larger strain on the battery and alternator. Have the battery and alternator been upgraded to keep up with this added strain as well?
These are the areas that the department has complete control over. An organization cannot control the weather, but they can understand what effects the weather has and correct them at their root. Winter brings cold temperatures; cold temperatures make it difficult for equipment to start.
The temperature cannot be changed, but where the equipment is parked can be. Can they be stored in a heated area? Could block heaters be installed at low cost? These are the kinds of questions that must be discussed in the Root Cause Analysis session with all stakeholders in the room.
Finding the root causes of operational hardships can minimize downtime and significantly boost productivity. With over 50 years of operations management experience, USC Consulting Group can troubleshoot any issues and establish preventative maintenance processes to enhance your asset management. Reach out today to learn more on how to set up an effective Root Cause Analysis.
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The U.S. chemicals manufacturing space is poised for growth following years of middling performance. Worldwide economic development, improvements in the domestic manufacturing and oil and gas industries, and the completion of improved chemical production infrastructure are likely to drive historic gains over the next two years, researchers from the American Chemistry Council found. Production volumes are expected to increase 3.7 percent in 2018 and 3.9 percent in 2019, laying the groundwork for an industrial valuation of more than $1 trillion by 2022. How has the sector managed to regain ground in the marketplace? Increased production capacity linked to digitization.
Advanced hardware and software are transforming chemicals producers of all sizes, facilitating efficiency gains across virtually all operational areas, from the back office to the shop floor, according to the World Economic Forum. By 2025, digital technology will have generated a cumulative economic value of between $310 billion and $550 billion within the worldwide chemicals space. There are, of course, countless solutions and deployment methods specially designed for use within the chemicals manufacturing arena. However, innovations centered on asset management stand above the rest in terms of demonstrable operational impact.
Unpacking the asset management equation
Chemical companies live and die by the mission-critical machinery they use to craft their product. In the event of unexpected downtime, the entire operation grinds to a halt, customers orders go unfilled, and revenue drops. Losses can increase at an accelerated rate when this occurs. For example, the average automotive manufacturer loses an estimated $22,000 per minute of unplanned production stoppage, according to research from Advanced Technology Services and Nielsen. Only the largest companies can weather such losses. Small or midsize organizations might falter entirely under the weight of such astronomical downtime costs.
Chemicals manufacturers are at great risk for suffering such events due to the very nature of their work. These firms supply the market with more than 100,000 different chemical compounds, according to the WEF. The vast majority of these substances are extremely caustic and therefore wreak havoc on production assets, requiring major investments in maintenance. In the U.S., chemicals producers are expected to spend more than $1.26 billion on planned maintenance activities in 2018, constituting a year-over-year rise of more than 38 percent, analysts for the ACC found. Of course, this figure does not take into account unplanned work, which usually costs 2 to 5 times more than scheduled activities, according to the Marshall Institute.
Implementing an innovative solution
Rising costs and the continual existence of massive maintenance-related risk has forced businesses in the chemicals manufacturing arena to embrace bleeding-edge technology in hopes of streamlining asset management workflows and ultimately improving reliability. Many are turning toward predictive maintenance processes powered by connected equipment sensors and robust backend platforms, Schneider Electric reported. These all-encompassing solutions allow chemical companies of all sizes to closely monitor their production assets and catch small mechanical issues before they devolve into full-on catastrophes with the potential to cause downtime. Such products also give producers the power to continually fine-tune their machinery, embrace continuous improvement, and boost productivity.
Early adopters have seen serious results, promoting wider investment in the technologies that underpin such proactive asset management approaches. For instance, businesses across all sectors are expected to spend more than $239 billion on industrial sensor technology alone in 2018, researchers for the International Data Corporation have predicted. Firms in the chemicals manufacturing space are likely to contribute to this spend as they retrofit their production workflows to more effectively compete in an expanding marketplace. However, such technology is unlikely to remain optional for long. Almost 90 percent of chemical company executives believe businesses in the industry that fail to embrace digitization will end up falling behind, the WEF found.
Chemicals manufacturing firms standing on the outside looking in on this trend must act quickly to implement next-generation asset management processes and technology. USC Consulting Group can help. Here at USCCG, we’ve been working with businesses across numerous industries for 50 years, helping them adjust to marketplace transformations of all kinds. Connect with us today to learn more about our work and how our chemicals manufacturing consultants can help your enterprise embrace and benefit from digitization.
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Asset-intensive industries have cautiously maintained their commitment to present and future major capital investments in the wake of the 2008 economic collapse. Total capital expenditure, which includes the purchasing of both equipment and structures, has grown without pause since 2009, according to a recent report from the U.S. Census Bureau.
But ventures today are not the same as they were before 2008. They now come with new perspectives on how best to improve reliability across the business with tightening margins, ensure throughput or productivity by reducing downtime and preserve mission-critical assets effectively, intelligently, and affordably throughout their life cycles. To some degree, all industries with large-scale assets cared about these principles in the past, but now many – energy, oil and gas, process industries, telecom – must do so in the face of trends rapidly transforming their sectors.
Considering major capital investments? Here’s how enterprise asset management and maintenance can save you from dire financial straits.
Are you caught in an asset utilization trap?
Industries with heavy assets owe it to themselves to develop innovative and more robust asset management practices, lest they fall victim to an endless cycle of profligate capital spending.
Let’s use an example industrial businesses have no doubt experienced: how to respond to low asset utilization. A mining company crunches the data on month-over-month utilization for its fleet of articulating vehicles. Asset management metrics return a utilization rate of around 45 percent, same as it’s been for more than a year. Utilization has plateaued, so company stakeholders decide that increased capital investment on newer trucks will resolve their issue with stagnant asset-related revenue generation.
Chances are good that it won’t, definitely not if low utilization stems from maintenance and scheduling. An ill-prepared asset management program in charge of a larger fleet will only exacerbate the utilization problem, not fix it.
If this mining company, or any other asset-reliant business for that matter, truly believes in the doctrine of continuous improvement, they will turn their attention to the real culprit: underdeveloped asset management operating systems and reliability-centered maintenance. Here’s how to build out these areas and create an asset support network that drives higher utilization:
Get granular with preventive or predictive maintenance
All industries that rely on heavy equipment or high-tech plants must gradually, but assuredly, move toward a proactive versus reactive stance on enterprise asset management. Repairs and calibration must either happen on a time-based cycle (preventive maintenance or PM) or through advanced sensors and preemptive failure detection (predictive maintenance or PdM).
However, these are very broad recommendations asset management teams will probably already understand the value of. What specific details should PM and PdM adopters lock onto if they want to boost utilization?
Pinpoint ideal KPI metrics: Find the measurements that align best with your mission as an organization and can report capably on issues surrounding asset utilization, then automate the acquisition and visualization of those measurements so you understand them in real time.
Investigate data hygiene: Key performance indicators must be accurate to serve operators, technicians, and supervisors. Review where your data comes from, who handles it, and what may adversely affect its veracity.
Standardize cross-functional transparency: Businesses that democratize information allow their workers to contribute to and analyze all data related to asset health. Build visibility into the entire asset management operating system – reporting, inspecting, scheduling, repairing, confirming, and documenting – and leave no area of your business in the dark.
Devote more resources to root cause failure analysis
Are mechanical failures on critical assets really the result of something mechanical? You’ll never know without comprehensive root cause failure analysis (RCFA).
Although deficiencies or outright failures may present as technical glitches, best-in-class asset management processes must dig below the surface to reveal what’s actually causing asset functionality – and ultimately utilization across the board – to drop.
Returning to the hypothetical mining company from before – perhaps utilization rates were low because heavy trucks require a lot of maintenance. What kind of maintenance? Technicians report back that the most common work order is repair or replacement of shock absorbers. To the untrained eye, this appears rational given the rough terrain and capacity requirements of the job. But practitioners of thorough root cause failure analysis don’t stop there. They ask the following:
- Are these universal issues experienced by competitors?
- Are these failures caused by the roads we drive on?
- According to the manufacturer’s specifications, are we overloading these trucks?
- Is a lack of communication between operators and maintenance professionals to blame?
Immediate remediation of one, some, or all of these concerns will improve the reliability and availability of assets, raise utilization rates, and may even deter unnecessary capex and opex spending. In order to achieve this high level of awareness over the condition of capital investments, however, asset-intensive businesses must first invest their time and effort into fleshing out RCFA.
Want to learn more about how to improve asset utilization through asset management and proactive maintenance? Contact USC Consulting Group to speak to an operations management consultant today.