Average facilities waste over 20% of their budget on performing inspection and maintenance activities that do not drive uptime or help mitigate risk. As decision makers across all industries are facing the difficult challenge of reducing cost while maintaining safe and reliable operations, knowing how to optimize your budget and resources is critical to proactively surviving the current economic changes. One way that your facility has the potential to reduce cost is by prioritizing your inspection and maintenance activities. To start, major cost focus areas include:

    • Tasks driven by time-based events
    • Duplication of efforts across the asset’s lifecycle
    • Turnaround vs. onstream activities

Switching from a time-based approach to a value-based approach can open the door for your facility to potentially save millions annually. The overall challenge is identifying where you need to focus your efforts at the start to maximize your return on investment in the end. To understand your current state, begin by asking yourself the following questions:

Do you know the “critical” deficiencies of your facility?

Identify where your biggest vulnerabilities are. Whether it’s from an economic, safety, health or environmental standpoint, make sure you understand your deficiencies and know how to categorize them across your facility.

Do you know your asset’s functional failures, failure modes, and the probability of that event occurring?

Understand how your assets fail, learn how failures are propagated, and then, ultimately, understand what the likelihood is for failures to occur. Use these three things as building blocks for developing your asset strategy.

Are you having an increase in loss of function or loss of containment events? Do you understand this trend by asset type? Do you only schedule tasks based on time-based intervals? Are your turnaround budgets increasing due to finding significant discovery work?

Today, if you were asked where you are at in regard to your turnaround planning, would you say that you close scope at six months, twelve months, or is it after you are started the turnaround that you are still figuring out your scope? Identify where you would land here in order to understand why your turnaround budget is increasing.

After you have taken the time to understand your current state, you can begin to develop your strategy. To do so, start by digitizing your existing work processes. Digitizing really acts as your main building block to help eliminate unnecessary steps in your facility’s operations. If you haven’t digitized, learn more about the process in Reduce Cost by Digitizing Your Work Processes.

Next, identify functional failures and failure modes. The key here is to understand what assets to focus on first, because it can be a huge task to identify all functional failures across an entire facility. Once you have built your functional failures and failure modes, determine the correct mitigation actions to take to ensure that you are putting a stop to any damage that may potentially occur. Then, once you have those actions created and know where to look and what to look for, determine a plan to implement those actions that identify what tools you may need to help you perform them successfully.

To conclude, after you have taken the time to understand your current state and have taken a stab at developing your strategy, you can begin exploring other areas that will allow you to build for future cost reduction within your facility, including:

    • Accurate MRO/spare parts forecasting
    • Reduced maintenance and inspection costs – task frequencies based on value, improved work control (planning/scheduling, inspection effectiveness, productivity)
    • Capital investment analysis
    • Turnaround planning – more screening/onstream inspections, less discovery work
    • Establishing greenfield facility POF baselines
    • Establishing/validating operating windows
    • Onstream inspection opportunities

Watch the Full Recording & Download the E-Book

Dive into the information listed above in greater detail and access
example deliverables by watching the full event recording here.

View Other Cost Reduction Topics

To access the e-book, fill out the form below.

Have any questions for the presenters?