The Maintenance Excellence Institute
How OCE Impacts Your Bottom Line: Part II – Page 11
Where Can We Apply OCE Gained Value: Maintenance operations that continually fight fires and react to emergency repairs never have enough time to cover all the work (core requirements) that needs to be done. Overtime, more crafts people or more contracted services typically seem
to be total
the only answers. Improving craft productive craft hours available.
utilization provides additional craft capacity in terms of In relation to OEE, OCE is increased people asset
availability and capacity. It is gained value that can be calculated and estimated measured. The additional equivalent craft hours can then be used to reduce overtime, PM/PdM, reduce the current backlog and attack deferred maintenance which doesn’t Figure 2 shows; “How your valuable craft time can just slip away”.
and then devote to go away.
Typically, operations that gain productive craft hours desperately need to invest the time elsewhere. Likewise, we can not automatically and indiscriminately reduce head count when we improve overall craft effectiveness. Indiscriminate cutting of maintenance is killing the goose that lays the golden egg. If an organization is not achieving core requirements for maintenance the cutting of craft positions to meet budget is like using blood letting as a new cure for a heart attack. It just will not work.
Just like the high cost of low bid buying, gambling with maintenance costs can be fatal. Long- term stabilization and reduction of head count can occur. Attrition can absorb valid staff reductions that may result over the long-term. We also may regain our competitive edge and get back some of the contract work we lost previously to low performance and productivity. We cannot indiscriminately cut craft labor resources when we increase OCE.
Think Profit-Centered: Today’s maintenance leaders and crafts people must develop the “maintenance-for-profit” mindset that the competition uses to stay in business. Measuring and improving Overall Craft Effectiveness and the value received from improving our craft assets an important part of total asset management. Profit-centered in-house maintenance in combination with the wise use of high quality contract maintenance services will be the key to the final evolution that occurs. There will be revolution within organizations that do not fully recognize maintenance as a core business requirement and establish the necessary core competencies for the maintenance. The bill will come due for those operations that have subscribed to the “pay me later syndrome” for deferred maintenance. It will be revolution within those operations that have gambled with maintenance and have lost with no time left before profit-centered contract maintenance provides the best financial option for a real solution.
Maintenance is Forever: Contract maintenance will be an even greater option and business opportunity in the future. Again we must remember - Maintenance is Forever! Some organizations today have neglected maintaining core competencies in maintenance to the point that they have lost complete control. The core requirement for maintenance still remains but the core competency is missing. In some cases, the best and often only solution may be value-added outsourcing. Maintenance is a core requirement for profitable survival and total operations success. If the internal core competency for maintenance is not present it must be regained. Neglect of the past must be overcome. It will be overcome with a growing number of profit- centered maintenance providers that clearly understand Overall Craft Effectiveness and providing value added maintenance service at a profit.