Profit loss indicator: a novel maintenance indicator applied for integrated planning

doi:10.1007/s40436-015-0113-6

Advances in Manufacturing ›› 2015, Vol. 3 ›› Issue (2): 139-150.doi: 10.1007/s40436-015-0113-6

Previous Articles Next Articles

Profit loss indicator: a novel maintenance indicator applied for integrated planning

Harald Rødseth¹, Terje Skarlo², Per Schjølberg¹

1 Department of Production and Quality Engineering, Norwegian University of Science and Technology, Trondheim, Norway;
2 Department of Technology, Sør-Trøndelag University College, Trondheim, Norway

Received:2015-02-20 Revised:2015-05-06 Online:2015-06-25 Published:2015-06-18
Contact: Harald Rødseth E-mail:Harald.Rodseth@ntnu.no
Supported by:
We thank Center for Integrated Operations in the petroleum industry (IO Center) for funding this research. In addition, we sincerely thank the saw mill company Kjeldstad Trelast AS for making the case study possible; in particular, the support and important input from the Chief Engineer Frode Edvardsen in this company in order to perform the PLI calculations.

Abstract

Abstract: In production environment today, "silo thinking" is a challenge where controlling an asset associated with several disciplines and departments can lead to a suboptimal result. This requires a more integrated approach with an integrated planning (IPL) framework. In this framework novel maintenance key performance indicators (KPIs) are needed. The purpose of this article is to develop the novel maintenance KPI profit loss indicator (PLI). This indicator is based on measuring both on the "hidden factory" and waste in production, presenting it as a financial measure. The notion "hidden factory" is used as a metaphor for measuring the time losses in industry through the maintenance KPI overall equipment effectiveness (OEE). This indicator divides the time losses into availability losses, performance losses and quality losses. In addition, a financial measure for waste based on literature from Toyota production system (TPS) and waste treatment and disposal is also included in PLI. Through a case study in the saw mill industry PLI is demonstrated and evaluated. It is expected that this indicator will be demonstrated in several industry branches in the future.

Key words: Integrated planning (IPL), Maintenance performance, Key performance indicator (KPI), Hidden factory, Waste, Asset management

Harald Rødseth, Terje Skarlo, Per Schjølberg. Profit loss indicator: a novel maintenance indicator applied for integrated planning[J]. Advances in Manufacturing, 2015, 3(2): 139-150.

TrendMD

References

1. Rødseth H, Schjølberg P (2014) The importance of asset management and hidden factory for integrated planning. Adv Mater Res 1039:577-584

2. Powell D, Rødseth H (2013) ICT-enabled integrated operations: towards a framework for the integration of manufacturing- and maintenance planning and control. Paper presented at the advances in production management systems: sustainable production and service supply chains, Penn State University,2013-09-09-2013-09-12

3. Center I (2013) Annual Report 2013-Center for integrated operations in the petroleum industry

4. Aghezzaf EH, Najid NM (2008) Integrated production planning and preventive maintenance in deteriorating production systems. Inf Sci 178(17):3382-3392

5. Kovács A (2005) Novel models and algorithms for integrated production planning and scheduling. Budapest University of Technology and Economics, Budapest

6. Portioli-Staudacher A, Tantardini M (2012) Integrated maintenance and production planning: a model to include rescheduling costs. J Qual Maint Eng 18(1):42-59

7. Iravani SMR, Duenyas I (2002) Integrated maintenance and production control of a deteriorating production system. IIE Trans (Inst Ind Eng) 34(5):423-435

8. Kazaz B, Sloan TW (2013) The impact of process deterioration on production and maintenance policies. Eur J Oper Res. doi:10.1016/j.ejor.2012.11.052

9. Najid NM, Alaoui-Selsouli M, Mohafid A (2011) An integrated production and maintenance planning model with time windows and shortage cost. Int J Prod Res 49(8):2265-2283

10. Rødseth H, Schjølberg P (2014) Integrated planning: a novel concept for maintenance management. Paper presented at the EuroMaintenance 2014, Finland

11. Kerzner H (2011) Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. International Institute for Learning, Hoboken

12. Koch A, Oskam A (2007) OEE for the production team: the complete OEE user guide. FullFact, Lieshout

13. Williams PT (2005) Waste treatment and disposal. Wiley, Chichester

14. Liker JK, Meier D (2006) The Toyota way fieldbook: a practical guide for implementing Toyota's 4Ps. McGraw-Hill, New York

15. Al-Najjar B (2006) A model to diagnose the deviation in the maintenance performance measures. In: Proceedings of the 1st world congress on engineering asset management,WCEAM2006, pp 87-93

16. Rødseth H, Langeland C, Myklebust O (2012) Integrated key performance indicators-a tool for smarter decision making. In: Proceedings of IWAMA 2012-the second international workshop of advanced manufacturing and automation. NTNU Engineering Series, Tapir Akademisk Forlag, pp 259-266

17. IEC (1990) IEC 60050-191: international electrotechnical vocabulary. Chapter 191: dependability and quality of service. International Electrotechnical Commission, Geneva

18. Rausand M, Høyland A (2004) System reliability theory: models, statistical methods, and applications. Wiley-Interscience, Hoboken

19. Rødseth H, Andersen B (2013) Early warning indicators for integrated planning. Paper presented at the PMAA 2013 Conference, New Zealand

20. Al-Najjar B (1996) Total quality maintenance: an approach for continuous reduction in costs of quality products. J Qual Maint Eng 2(3):4-20

21. Juran JM (1951) Quality control handbook, 1st edn. McGraw- Hill, New York

22. Nakajima S (1989) TPM development program: implementing total productive maintenance. Productivity Press, Cambridge, Mass

23. BLOM (2003) OEE Industry Standard: version 2.0 August 2003. Blom Consultancy, The Nederlands

24. Shirose K (1996) TPM total productive maintenance new implementation program. Japan Institute of Plant maintenance, Tokyo

25. NS-EN 13306 (2010) Maintenance: maintenance terminology. European Committee for Standardization (CEN), Brussels

26. ISO (2005) ISO 9000 qualitative management systems—fundamentals and vocabulary. ISO, London

27. Linderman K, Schroeder RG, Zaheer S, Choo AS (2003) Six Sigma: a goal-theoretic perspective. J Oper Manag 21(2):193-203

28. Rolstadås A, Andersen B, Schjølberg P (1999) Produksjons—og driftsteknikk. Tapir, Trondheim

29. IEC 60300-3-3 (2004) Dependability management - application guide: life cycle costing. International Electrotechnical Commission, Geneva

30. Blanchard BS, Fabrycky WJ (2011) Systems engineering and analysis. Pearson, Boston

31. Wilson A (2002) Asset maintenance management: a guide to developing strategy & improving performance. Industrial Press, New York

32. Leiwy D, Perks R (2013) Accounting: understanding and practice. McGraw-Hill, Maidenhead

33. Myklebust O (2002) Enterprise modelling supported by manufacturing systems theory. Dissertation, Norwegian University of Science and Technology, Trondheim

34. Lange J, Iwanitz F, Burke TJ (2010) OPC: from data access to unified architecture. VDE Verlag, Berlin

Profit loss indicator: a novel maintenance indicator applied for integrated planning

PDF

Knowledge

Cited

Abstract

Cite this article

share this article

References

Related Articles 1

Recommended Articles

Metrics

Comments