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on total maintenance lifecycle cost (direct and throughput loss) ? No spares replacement costs taken into account when equipment purchased ? Equipment spares replacement cost reduced by using secondary suppliers ? Equipment spares replacement costs negotiated after equipment purchased ? Equipment spares replacement cost negotiated with supplier when equipment purchased Continued . . . 981009SYQNA001DMCP1 6 MAXIMISE EFFECTIVENESS: EQUIPMENT STRATEGY (Continued) Component Poor Average Good Worldclass Designout engineering ? No equipment histories reviewed annually ? 20–30% of histories reviewed annually by maintenance, engineering and operations ? 60% of histories reviewed annually by maintenance, engineering and operations ? 90% of histories reviewed annually by maintenance, engineering and operations ? No effort focused on continuous improvement ? 5% of effort focused on continuous improvement ? 15% of effort focused on continuous improvement ? 25% of effort focused on continuous improvement ? Maintenance has no engineering support ? Maintenance has occasional engineering support ? Engineers do most project work and some support of continuous improvement ? Engineers fully support continuous improvement effort ? No reliability engineering ? No reliability engineering ? Some reliability engineering ? Reliability engineering program in place, prioritised and focused on increasing critical equipment uptime ? No maintenance input to engineering ? Maintenance input only on maintenance capital projects ? Maintenance input sought after capital projects set ? Maintenance (engineers, supervisors, planners, mechanics) involved up front on all capital projects ? Ignore equipment supplier specifications ? Use equipment supplier specifications to set reliability goals for current equipment ? Seek out assistance from equipment supplier to increase reliability of current equipment ? Equipment suppliers and outside benchmarks/ideas are continually used to increase reliability on current equipment ? Outside sources (other mills, industry reviews, etc) are never reviewed to identify costeffective technologies that could improve performance ? Outside sources are reviewed only for specific circumstances ? Outside sources are occasionally reviewed to identify costeffective technologies that could improve performance ? Outside sources are continually reviewed to identify costeffective technologies that could improve performance 981009SYQNA001DMCP1 7 MAXIMISE EFFECTIVENESS: ORGANISATIONAL CAPABILITIES Component Poor Average Good Worldclass Organisational structure ? Functional structure with excess layers (5) and excessive craft lines ? Flat, areabased structure with one craft designation ? Functional structure with 4 or less layers and few craft lines ? Flat and integrated structure with few craft lines ? No integration with major support functions, eg stores, engineering, purchasing ? Full integration with major support functions ? No integration with major support functions, eg stores, engineering, purchasing ? Good integration with major support functions Crossfunctional munication ? Maintenance and operations are defensive。 No PM reports ? Preventive maintenance on major equipment only。981009SYQNA001DMCP1 CONFIDENTIAL This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client anisation without prior written approval from McKinsey amp。 it is not a plete record of the discussion. Discussion document October 1998 Key Elements of Worldclass Maintenance: Facility Self Assessment 981009SYQNA001DMCP1 1 KEY ELEMENTS OF WORLDCLASS MAINTENANCE There are 6 key elements of worldclass maintenance. While each element can be considered separately, a true worldclass maintenance anisation will contain all 6 key elements Overall goals Key elements Achieve worldclass maintenance performance Problem diagnosis and repair execution Maximise effectiveness Maximise efficiency Equipment strategy Organisational capabilities Planning and scheduling Infrastructure support System support 981009SYQNA001DMCP1 2 KEY ELEMENTS OF WORLDCLASS MAINTENANCE: MAXIMISE EFFECTIVENESS Overall goals Key elements Primary ponents Achieve worldclass maintenance performance Maximise efficiency Problem diagnosis and repair execution ? Getting the job fixed fast and fixed right the first time at the rootcause level Equipment strategy ? Executing low totalcost equipment strategies focused on preventing failures and eliminating all possible equipment defects Organisational capabilities ? An anisation which municates well crossfunctionally, shares accountability, and continuously builds key skills Infrastructure support Planning and scheduling System support Problem munication Problem rootcause identification Repair planning and execution Maintenance strategy linked with equipment criticality Lifecycle purchasing strategies Des