CERTIFIED MAINTENANCE

AND RELIABILITY
PROFESSIONAL TRAINING
 ABOUT THE CMRP EXAM
• The CMRP program is the leading credential for certifying the knowledge,
skills and abilities of maintenance, reliability and physical asset
management professionals.
• It has been developed to assess professionals’ aptitude within the five
pillars of the SMRP Body of Knowledge, which include: business and
management, manufacturing process reliability, equipment reliability,
organization and leadership, and work management.
• The CMRP exam contains 110 multiple-choice questions with four possible
answers and only one correct answer.
• Examinees have two and one-half (2.5) hours to complete the closed-book
exam
Pillar Description % of Weightage

Pillar 1 Business and Management - 21%

Pillar 2 Process Reliability - 13%

Pillar 3 Equipment Reliability - 23%

Pillar 4 Organization & Leadership of - 17 %

Personnel
Pillar 5 Work Management - 26%
 PILLAR – 1

BUSINESS AND MANAGEMENT

 BUSINESS AND MANAGEMENT
• Business Basics - Speak the language of finance to be aligned and to
be successful.
• Create the M&R Strategic Direction and Plan - Set the direction.
• Administer the M&R Strategic Plan - The elements that support the
implementation of the strategic plan.
• Measure Performance - Define KPIs and goals and achieve objectives.
• Organizational Change - Prepare and apply a change management
model.
• Communication Plans - Manage stakeholders to assure success.
 BUSINESS BASICS
• The organization’s objectives are derived from the context of the
organization and the stakeholder requirements.
• The Maintenance and Reliability function has to facilitate achieving the
organization’s objectives by aligning the activities of the department
appropriately.
• The activities of the Maintenance and Reliability function can be aligned,
only if we as Maintenance and Reliability professionals understand the
following:
• Context of the organization;
• Stakeholder requirements;
• Objectives of the Organisation ;
• Marketing strategy;
• Manufacturing strategy; and
• The language of finance.
ORGANIZATIONAL OBJECTIVES & THE ROLE OF
MAINTENANCE & RELIABILITY
SHARE HOLDERS CUSTOMERS REGULATORS EMPLOYEES SOCIETY

ORGANIZATION CONTEXT

ORGANIZATIONAL OBJECTIVES

LEVEL OF SERVICE
ORGANIZATIONAL OBJECTIVES & THE ROLE OF
MAINTENANCE & RELIABILITY

ORGANIZATIONAL OBJECTIVES

LEVEL OF SERVICE

STRATEGIES AND PLANS TO MEET LEVEL OF SERVICE

ASSET PERFORMANCE REQUIREMENTS

RELIABILITY, AVAILABILITY & MAINTAINABILITY GOALS

ORGANIZATIONAL REQUIREMENTS & THE
ROLE OF M&R IN ACHIEVING THEM
LEVEL OF SERVICE

MARKETING STRATEGY

MANUFACTURING STRATEGY

MAINTENANCE & RELIABILITY STRATEGY

MAINTENANCE RELIABILITY MAINTENANCE

PLANS IMPROVEMENTS OPTIMIZATION
 BUSINESS BASICS
• Understanding Business imperatives
• Cashflow
• Return on Investment (ROI)
• Growth
• Competitive Strategy and how it affects Marketing and Sales.
• Aligning operating strategy and manufacturing strategy to marketing
strategy.
 Understanding Business imperatives

• Competition
• Customer preference
• Laws & Regulations
• Technology
• Risks
• Asset management
 Finance basics
Cashflow
• It is the difference between cash flowing into the organization and the
cash that is flowing out of the organization at any point of time.
Return on Investment
• How much money is being made from the investment.
• Return = Margin x Velocity
• Where
• Margin is unit net profit after tax; and
• Velocity is total sales/total assets
Growth
• Profit
• Revenue
• Market share
Marketing Strategy
Manufacturing Strategy
Contribution of M&R
Strive to shift the break-even point
towards the left, by improving
availability, reliability and quality to
reduce fixed and variable costs
 Competitive Strategy,
Marketing Target customers,
Market share, Pricing
Strategy Strategy

Availability, Reliability,
Quality, Capacity Allocate production,
enhancement, Lowest Asset capacity
cost per unit optimization, Process
reliability
improvement, Asset
rationalisation
Contribution of M&R function

Operating Production Manufacturing

Plan Target
Strategy
 CREATE THE M&R STRATEGIC DIRECTION AND
PLAN
• Maintenance and reliability leaders create a vision, mission, and
strategic plan to guide implementation of appropriate maintenance
and reliability processes in order to achieve organizational business
goals.
• The strategic plan provides clear purpose (a demonstrated need),
defined goals, and in turn, benefits to the organization.
 STRATEGIC PLAN
• It produces fundamental decisions and actions that shape and guide what
an organization is, who it serves, what it does, and why it does it, with a
focus on the future.
• Strategic Plan is an activity undertaken by the management and it
facilitates:
• Setting priorities and allocating resources;
• Encourages cross functional interaction;
• Alignment of purpose amongst stakeholders;
• Agreement on objectives, measures and milestones; and
• Identification of risks and opportunities and mitigating the risks and exploiting the
opportunities proactively.
• Strategic plan is the document that communicates:
• Organisational objectives;
• Actions to achieve those objectives; and
• Decision making guidelines.
 STRATEGIC PLAN
• Effective strategic planning articulates not only where an organization is going
and the actions needed to make progress, but also how it will know if it is
successful.
• The strategic plan needs ownership at the executive level as well as at the staff
level.
• Identify champions of the strategic plan at all levels of the organization and have
them help define what’s in it for the people they influence.
• Strategic Plan and Goals must be Understood and Supported by Operations,
Maintenance and Other Involved Discipline. It is important to include all verticals
of the organization in this process.
• Strategic Plan consists of:
• Mission Statement;
• Vision Statement;
• Core value;
• Objectives;
• Plans to achieve the objectives
 M&R Strategic Plan Concepts

UNDERSTAND THE UNDERSTAND UNDERSTAND “THE ESTABLISH A VISION, STRATEGIC PLAN

ORGANIZATION’S CURRENT GAP” BETWEEN MISSION, AND AND GOALS MUST
BUSINESS GOALS MAINTENANCE AND CURRENT STRATEGIC PLAN BE UNDERSTOOD
RELIABILITY CAPABILITIES AND ESTABLISH CLEAR AND SUPPORTED BY
CAPABILITIES CAPABILITIES AND MEASURABLE OPERATIONS,
REQUIRED TO GOALS MAINTENANCE, AND
ACHIEVE STATED OTHER INVOLVED
GOALS STRATEGIC PLAN STAKEHOLDERS
AND GOALS NEEDS
UNDERSTAND RISK TO ALIGN WITH AND
AND CULTURE SUPPORT OVERALL
BUSINESS GOALS
 Creating a mission statement
• The mission statement of the organization outlines the company’s
business, its goals and its strategy for reaching those goals.
• It focuses more on where the company is at the present time and the
tactical steps it wants to use to achieve its objectives.
• The mission statement of a company can be used to shape the culture of
the organization.
• When establishing a mission statement for your company, outline
• what it is your business does,
• who you serve and
• how you serve them.
• Those are the three most critical elements of a business’ mission
statement.
 Creating a mission statement
• A Mission Statement is a well thought out statement, developed
through consultation with the stakeholders who can be affected.
• For M&R organization, it should address the following :
• What is the department good at achieving?
• How will it help the other elements of the organization, especially in the area
of product or service delivery?
• What the people in the department are passionate about?
• What can bring satisfaction to the entire team?
Sample Mission Statement
 Creating a vision statement
• A vision is a vivid mental image of what you want your business to be at
some point in the future, based on your goals and aspirations.
• Having a vision will give your business a clear focus, and can stop you
heading in the wrong direction.
• A vision statement captures, in writing, the essence of where you want to
take your business, and can inspire you and your staff to reach your goals.
• Your vision statement might be inspired by certain aspects of your
business, such as:
• Reputation (e.g. among customers, staff, competitors)
• Service quality standards (e.g. to make customers a priority)
• Growth (e.g. you offer new products, innovate, get more customers, increase
locations)
• Passion (e.g. that you and your staff enjoy what you do)
• Sustainability (e.g. that you are financially and environmentally sustainable).
• You should also think about what inspired you to start a business, and what business
values and principles are important to you.
 Creating a vision statement
• Imagine what departmental success would look like in the next3-5 years.
This will help to identify what you want to be achieved by the department,
while fulfilling the departmental and organization’s mission.
• Make a list of categories of things that are important. Some of the
categories may be:
• Financial performance;
• Departmental performance;
• EHS
• Employee satisfaction; and
• Customer satisfaction
• For each of these categories, mention what each one would look like in the
next 3-5 years.
 Core Values
• Value statement defines:
• What the organization believes in; and
• How the people in the organization behave with each other, customers and
other stakeholders.
• Provides guidance on taking decisions, where there is no defined
decision criteria.
• Values are to be reinforced through affirmative actions.
• A manager is expected to live the value.
• Values are followed, even when easier options are available.
 Strategic Planning Tools
• Balanced Scorecard
• Key Performance Indicators (KPI)
• SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats)
• Risk analysis
• OEE (Overall Equipment Effectiveness)
• Return on Investment (ROI)
• Net Present Value (NPV)
• Benchmarks
 Balanced Score Card
• A very common way to manage and monitor performance indicators is to
apply a management framework such as the balanced scorecard. A
scorecard is simply a report that displays a collection of performance
indicators.
• It helps align business activities to the vision and strategy of the
organization and monitor performance against strategic goals.
• The balanced scorecard has evolved from its early use as a simple
performance measurement framework to a full strategic planning and
management system.
• As a performance- management tool, the balanced scorecard assists
management in aligning, communicating and tracking progress against
ongoing business strategies, objectives and targets.
• The balanced scorecard combines traditional financial measures with
nonfinancial measures to measure the health of the company from four
equally important perspectives.
 BALANCED SCORECARD

Measures the economic impact of actions on growth,

profitability and risk from the shareholder's perspective (net
income, ROI, ROA, and cash flow)

Measures the ability of an organization to provide quality

goods and services that meet customer expectations
(customer retention, profitability, satisfaction, and loyalty)

Measures the internal business processes that create

customer and shareholder satisfaction (project management,
Total Quality Management (TQM), and Six Sigma)

measures the organizational environment that fosters

change, innovation, information sharing and growth (staff
morale, training, and knowledge sharing).
Source: emaint.com
MEASURE PERFORMANCE
• A metric is a quantifiable measure used to track the progress and
success of a certain area of business.
• Metrics enable departments to analyze the success of their day-to-
day work.
• The metrics that matter may vary across departments within
business.
• Metrics are often measured relative to other time periods – they’re
pretty hard to quantify on their own.

• A key performance indicator (KPI) is a measure that tells you how

well your business is progressing towards one of its most
important objectives. However, a KPI is not the objective itself.
• A KPI will often depend on the performance of multiple people and
teams too, whereas metrics tend to be owned by one person or
team.
• KPIs get the whole team pulling in one direction towards a
common goal. They help teams and individuals prioritize their
workload and direct their efforts towards projects that will impact
key objectives.
 KPI

A KPI manages information about a goal set and the actual formula of the
performance that is recorded as well as measurements showing trends and the
current status of the performance.

The alignment of KPIs with the vision, mission, strategies and objectives of the
organization is the key to realizing an impact on the bottom line.

The challenge is to develop KPIs that provide a holistic and balanced view of the
business.
PS9

LEADING AND LAGGING INDICATORS

Leading Indicators Lagging Indicators

Slide 36

PS9 new
Pandian Srinivasan, 29-12-2021
SWOT Analysis
Risk Analysis
OEE
 Net Present Value
• The concept of ‘time value of money’ is used to account for cash flows
occurring in different years. It recognises that ‘money now’ is worth more
than ‘money in the future’.
• The discount rate is used to convert cash flows in future years into their
‘pv’ (at time = 0). It is used whenever the economic evaluation method
demands it, as follows:
• PV = /( ( + ) ^ )
• Where:
• PV = present value (at time 0 or now)
• FV = future value (cash flow in future year n)
• R = discount factor (percentage discount rate expressed as a decimal)
• N = number of the year in which the cash flow occurs
 Net Present Value
𝑭𝑽𝟏 𝑭𝑽𝒏
+……+ -
(𝟏 𝒓)𝟏 (𝟏 𝒓)𝒏

Consider a project that costs $1,000 and will provide three cash flows of $500,
$300, and $800 over the next three years. Assume there is no salvage value at
the end of the project and the required rate of return is 8%. The NPV of the
project is:
?

𝟓𝟎𝟎 𝟑𝟎𝟎 𝟖𝟎𝟎

(𝟏 .𝟎𝟖)𝟏 (𝟏 .𝟎𝟖) 𝟐 + (𝟏 .𝟎𝟖)𝟑
- 1000 = 355.23
 Net Present Value
• Consider a project that costs $1,000 and will provide three cash flows
of $500, $300, and $800 over the next three years. Assume there is
no salvage value at the end of the project and the required rate of
return is 8%.

=( ∑ /( + )^ +……+ /( + )^ ) - CapEx
Capex=1000; FV1=500; FV2=300; FV3=800; and r=0.08

=( /( +. )^ + /( +. )^ + /( +. )^ ) - 1000
= 355.23
 Benchmarking
• Benchmarking is a way of discovering what is the best performance being
achieved – whether in a particular company, by a competitor or by an entirely
different industry.
• This information can then be used to identify gaps in an organization’s processes
in order to achieve a competitive advantage.
 Objectives
• Objectives provide the quantitative value for the intended outcome.
• The M&R objectives should be aligned towards achieving the
organizational objectives.
• Characteristics of objectives are : SMART
• S – Specific
• M – Measurable
• A – Achievable
• R – Relevant
• T – Time bound
 OBJECTIVES
• Some typical goals and objectives for a maintenance organization
are.
•Maintain the capability of the company's assets to perform their designed
function thereby increasing shareholder value by maximizing the company's
return on assets.
•Maximizing production or operational throughput
•Identify and implement cost reductions
•Provide accurate equipment maintenance records and maintenance cost
information
•Optimize maintenance resources
•Labor, materials, contract
•Optimize capital equipment life
•Minimize energy usage
•Responsibility for Environmental, Safety, and Health compliance.
 Administer strategic plan
• Administering the strategic plan involves developing support, preparing
budgets, obtaining approval and resources and implementing plans.
• In order to obtain the support and resources required to implement the
strategic plan, a business case should be developed that specifies the
benefits in financial terms.
• The business case should also include the changes that will be required to
the organization structure, personnel, roles and responsibilities, tools and
training, and priorities.
• Maintenance and reliability leaders should communicate this vision to
those with a stake in the process to garner commitment to implementation
and execution of the plan.
• This requires champions positioned to lead the effort and enlist support of
customers, stakeholders and staff.
 BUSINESS CASE
• A business case is a package of information, analysis, and
recommendations.
• It includes a plain language statement of the problem to be solved, with
key data to illustrate its significance, as well as its severity and complexity.
• It also identifies customers and other stakeholders and how they are
affected by the problem.
• The case clearly states assumptions, estimates, and other weaknesses in
your underlying data.
• It presents the options available to the decision maker, comparing features,
costs and benefits, and stakeholder impacts for each option.
• The case concludes with a recommended course of action and a
justification that presents its strengths and weaknesses.
• Never try to impose your personal preference in a business case.
 Measure performance
• As the strategic plan is being implemented, the progress needs to be
measured to provide assurance that:
• The plan is yielding results, as expected;
• The objectives will be met in time;
• The quantity and quality of the resources are adequate;
• Risks to achieving the objectives are identified and mitigated.
• Measuring the right things the right way is a key to any successful
maintenance and reliability process.
Measure performance
PS12
MEASURE PERFORMANCE
ESTABLISH A GOAL FOR EACH KEY PERFORMANCE INDICATOR

A successful maintenance reliability effort

The KPIs and goals should be aligned with
depends on measuring the right things the
Vision, Mission and Strategic plan
right way.

Leading
The leading and Lagging KPIs ensure you can You need KPI targets to communicate the
track your progress in achieving the goals. level of performance you are trying to achieve.
Influence Future
Performance
These long term targets can be:
Set a long-term target: Start by defining your
• Derived from your overall mission.
long-term target first. This target (which is set
for 3-5 years out) typically corresponds with • Related to your benchmarking.
your strategic plan. • Based on your own historical performance.

Analyze Past
Determine leading and lagging indicators:
Performance
• Lagging indicators show whether or not you accomplished your goals.
• Leading indicators show what needs to be done to meet your goals.
• Leading and lagging Indicators must be linked together.
• Break them down into annually and quarterly targets
Lagging
Slide 53

PS12 Pandian Srinivasan, 29-12-2021

 Performance management
Performance management is an approach used to manage performance of
an organization. It can play an important role in the success or failure of a
business.
It can be applied to measure the performance of an organization, a business
unit, a single department, a project, an employee, and even the process to
build a product or service.
It includes activities that will help to ensure goals are consistently being met
in an effective manner. Those activities include:
• Planning and setting expectations,
• Developing the capacity to perform,
• Continually monitoring performance,
• Periodically rating performance in a summary fashion, and
• Rewarding good performance.
 Performance indicators

• Performance indicators are measurements that define and assess

the performance and the success of an organization.
• They are objectives to be targeted in order to add the most value to
a business.
• They are means to periodically assess the performance of an
organization, its departments and the people working there.
• Performance indicators are developed to impact the entire
organization. Accordingly, choosing the right performance indicators
relies upon a good understanding of what is important to the
organization.
 Performance indicators

Performance Indicators are Used to:

• Help an organization to understand its performance levels and set realistic
performance goals.
• Help aligning daily work to the organization’s strategic goals.
• Help an organization monitoring its progress on a real-time basis.
• Help an organization to understand its weaknesses and establish
improvement priorities.
• Determine whether an improvement is being made and maintained.
• Help benchmark internally and externally.
• Identify if staff are doing well and to help them if they are not.
• Provide a basis for recognizing team and individual performance.
 Selecting the Proper Performance Indicators

• Performance indicators are often developed based on the critical

success factor.
• CSFs are the elements that are necessary for a strategy to be
successful and for an organization to achieve its mission.
• CSFs selection is a very subjective exercise and requires active
leadership by senior management.
• Examples of CSFs are: delivery on-time and in-full, providing
superior customer service, short time to market new products,
management commitment and staff orientation.
Proper Performance Indicators
 LEADING & LAGGING INDICATORS
LEADING INDICATORS LAGGING INDICATORS
1. Leading indicators are typically input oriented 1. Are typically “OUTPUT” oriented, easy to measure but
hard to measure and easy to influence. hard to improve or influence.
2. Leading indicators show what needs to be 2. Lagging indicators show whether or not you
done to meet your goals accomplished your goals.
3. The results of a change in behaviour can be 3. The results of a change in behavior can take weeks,
seen as soon as the action is completed. months, or even years to show up in the metrics.

LEADING “PREDICTIVE” INDICATORS: LAGGING “ACTUAL” INDICATORS:

Typically input driven /Examples: Typically output driven / Examples:
1. Schedule Compliance 90% 1. Maintenance Cost as % RAV (or ERV) 2.3%
2. % Planned Work 95% 2. Return On Net Assets (RONA)
3. %PM/CBM Work Compliance (Completed 3. Asset Availability (90%)
on Time) 4. MTBF
4. Work Order Cycle Time 5. OEE (85%)
5. %Rework 6. Maintenance Training Man-Hours/$ (100 Hrs./$1500)
6. Planner to Craftworker 1:20 7. Store Room Turn rate (1.4%)
8. Store Room Service Levels (97%)
 Utilising Performance Indicators

The following steps will help you understand how to establish and best utilize your
winning performance indicators:
• Review the quality of the current data collection methods (are you collecting
data unnecessarily?).
• Train staff on CFTs, KPIs, empowerment and process improvement methods.
• Start by a few easily understood performance indicators.
• Relate to critical success factors and reflect the voice of the customer.
• Allow teams to define and select their own performance indicators.
• Have your performance indicators approved by senior management.
• Measure and report only what matters.
• Monitor performance using dashboards.
• Display at workplace (on screens or public display boards).
• Use performance indicators as a basis for team meetings and decision making.
• Identify and pursue improvement goals
 CMMS/EAM

• Monitoring performance needs accurate data and information.

• CMMS/EAM solutions cater to this need by holding asset data,

performance and condition data and facilitating generation of reports.

• Enterprise Asset Management and Maintenance Solutions enables

companies to improve performance visibility by analyzing data for key
trends and anomalies, forecasting reliability issues, and making forward-
looking decisions that deliver improved bottom-line results.
Key functions of EAM / CMMS software include the following.
Work Orders: Scheduling jobs, assigning personnel, reserving materials, and recording costs.

Preventive Maintenance: Keeping track of preventive maintenance inspections and jobs,

including step-by-step instructions or checklists, lists of materials required, and other
pertinent details.

Asset Management: Recording data about equipment and property including specifications,
warranty information, service contracts, spare parts, purchase date, and expected lifetime.
Inventory Control: Management of spare parts, tools, and other materials including the
reservation of materials.

Advanced Reporting and Analytics: Creating customized reports and analyses that can be
used to forecast likely problems in time to prevent them. Financial Management and
Reporting Tools include Purchase Requisitions (PR), Purchase Orders (PO), and Approvals for
Expenditures (AFE)
 Roles, Responsibilities and Competence
• The success of achieving the objectives laid down in the Strategic plan
depends on the people in the organization. The key requirements are:
• Well defined hierarchy;
• Understanding of their roles in achieving the M&R objectives, which in turn
leads to achieving the organization’s objectives;
• Skills and competence required to deliver the responsibilities;
• Awareness of how their action / inaction affects achieving these objectives;
• Clarity on the scope, responsibilities and the boundaries;
• Interaction with other functions, both as customers and suppliers;
• Decision making criteria vested in the roles; and
• Escalation limits and authorities.
 Managing organizational changes
• An organization’s natural resistance to change needs a counter effort
by leadership to influence and sustain the change.
• Changes include the way that maintenance is identified, planned,
executed, tracked and analyzed.
• Developing a change management plan is important because it
affects the people who do the work.
• People have a different ability to change depending on the
implementation, their role, and their diverse backgrounds and
personalities.
• Therefore, it is important to understand how each of them will
progress through the change process; develop a change management
plan with this in mind.
CHANGE MANAGEMENT AND IMPLEMENTING CHANGE

A real (effective) change cannot

No matter how many goals are
happen unless the employees
set or how grand the vision is, Best practices are
accept the change with the
an organization can go only as improvements, and
heart; that can’t happen
far as the organizational culture improvements are change.
without having a desire for
will allow it.
change.

Organizational change
The employees have to have
management takes a structured
trust and see some benefits for Employees must see “what’s in
approach to change, helping
them and for the overall good. it for me” (WIIFM). The
executive management,
The intended change may not organization needs to have a
business units, and individual
bring a financial gain but instead change management process to
employees make the transition
ease of operation, maintenance, implement a change effectively.
from the current state to a
work safety, etc.
desired future state
 Change Management
• Change management (CM) refers to any approach to transitioning
individuals, teams, and organizations using methods intended to re-
direct the use of resources, business process, budget allocations, or
other modes of operation that significantly reshape a company or
organization.
• Definition of change management: The process, tools and techniques
to manage the people side of change to achieve a required business
outcome
SV2

CHANGE MANAGEMENT AND IMPLEMENTING CHANGE

The goal is to assist employees in
assimilating
The change:
goal is to assist to minimize
employees the
in assimilating
disruption
change: of expectations
to minimize andofloss of
the disruption
expectations
control that and
canloss of control
easily leadthat can
to resistance
easily lead to resistance on the part
on the part of those who must actually of those
who must actually change.
change.
Two key elements of any successful effort to
Two key
change elements
the culture are: of any successful
effort to change the culture are:
1. Influencing the behavior to change
1. Influencing the behavior to change
2. Overcoming resistance to change
2. Overcoming resistance to change
An organization’s resistance to change needs
to An organization’s
be countered resistance
by leadership to change
to influence and
sustain the change.
needs to be countered by leadership to
influence
Changes and the
include sustain themaintenance
way that change. is
identified,
Changes planned, executed,
include the waytracked and
maintenance is
analyzed.
identified, planned, executed, tracked
and analyzed.
Developing a change management plan is
important because it affects the people who
doDeveloping
the work. a change management plan
is important because it affects the people
doing the work.
Slide 68

SV2 To influence the behavior to change, the following actions are suggested:
• Increase understanding (i.e., why the change is needed and how it relates to vision).
• Set goals and expectations.
• Establish a process for praise and recognition.
• Define and clarify roles.
• Establish and standardize processes and procedures.
• Create discipline, develop tenacity, and be persistent.
To overcome resistance to change, the following actions are suggested:
• Listen and communicate.
• Create awareness.
• Educate and train to create understanding.
• Get team members involved and let them see some success.
• Empower team members to improve and tailor the process—change if needed.
S, Vinothkumar, 16-07-2021
KUBLER ROSS 5 STAGE CURVE:
5 stages are
1.Denial
2.Anger
3.Bargaining
4.Depression
5.Acceptance

PROS:
• A single individual response to change
is well captured. This can help to form a
communication strategy.

CONS:
• Not all changes are bad. The model
assumes a bad reaction to change.
• Difficult to identify transition between
changes
• Difficult to apply to a group.
BRIDGES TRANSITION MODEL
PROS:
Gives a good understanding of people
findings.

CONS:
Can’t be used by itself, but must be
coupled with other change management
approaches. As it doesn’t deal with the
change , but the personal transition.

CHANGE AND TRANSITION ARE DIFFERENT: • Transition is inner physiological process that
• Change is Situational people go through as they internalize and
• It is due to an external event that is taking place come to terms with new situation that the
• A new strategy change brings about.
• A change in leadership • The starting point for dealing with transition is
• A merger or a new product not the outcome but the endings that the
• The organization focuses on the outcome that the people have in leaving the old situation
change will produce, which is generally in behind.
response to external events and It can happen • Getting people through transition is essential
very quickly. if the change is actually to work as planned.
Prosci ADKAR Model

71
 PROSCI’S ADKAR MODEL

CHANGE MANGEMENT THEORY The Prosci 3-Phase Process

1. Change management is a set of process that are used

to ensure that significant changes are implemented in an
orderly controlled and systematic fashion to effect an
organizational change.

2.How well theory is translated into practice can be crucial

for determining whether a change initiative will be
successful or not.

3. To ensure the organization progresses through the

change curve successfully, a change management plan is
required.
FIVE ACTIVITIES CONTRIBUTING TO EFFECTIVE CHANGE MANAGEMENT

1. MOTIVATING CHANGE

2. CREATING VISION OF
CHANGE
EFFECTIVE
3. DEVELOPING
POLITICAL
CHANGE
SUPPORT MANAGEMENT

4. MANAGING THE
TRANSITION OF CHANGE

5. SUSTAINING
MOMENTUM
 Communicate with stakeholders
• Maintenance and Reliability leaders should be capable of creating and
executing a comprehensive communication plan to achieve
organizational business goals.
• To ensure the engagement of the stakeholders, an effective
communication plan provides methods of sharing information,
receiving feedback and providing input to decision-making processes.
• The plan includes appropriate communication with all stakeholders
and recognises the audience for which the message is intended.
• Multiple communication approaches and methods should be utilized
and the advantages and limitations of each should be understood.
 Stakeholders
• stakeholder is an "individual or group that has an interest in any
decision or activity of an organization.“
 Stakeholder analysis
• Stakeholder analysis is defined as a tool organizations can use to
clearly identify key stakeholders for a project or other activity,
understand where stakeholders stand, and develop cooperation
between the stakeholders and the project team. The main objective
is to ensure successful outcomes for the project or the changes to
come
• Primary Stakeholders: Those who are directly affected, either
positively or negatively, by an organization’s actions.
• Secondary Stakeholders: Those who are indirectly affected by an
organization’s actions.
 Stakeholder analysis
• Stakeholder analysis is frequently used during the preparation phase
of a project and is an excellent way to assess the attitudes of
stakeholders towards changes or critical actions. It can be done once
or on a regular basis to track changes in stakeholder attitudes over
time.
• Benefits of Creating a Stakeholder Analysis
• Provides clear understanding of stakeholders’ interests
• Offers mechanisms to influence other stakeholders
• Enables full understanding of potential risks
• Identifies key people to be informed about the project during the execution
phase
• Provides awareness of negative stakeholders as well as their adverse effects
on the project
Stakeholder Status
Stakeholder Analysis Matrix
 Communication plan
• Stakeholder engagement, building robust and useful relationships can
only be achieved through effective communication.
• ‘Communication’ is far more than project reports, it includes informal
discussions over coffee, emails, blogs and every other transfer of
information from the project team to a stakeholder.
• Defining appropriate responses requires an understanding of each
stakeholder’s levels of support and receptiveness to messages about
the project: this is the engagement phase and the precursor to a
targeted communication plan.
• The challenge is to keep the communication workload manageable
and the communication effective.
 Communication plan
• Having assessed the stakeholder’s current level of engagement and
the optimal level, a communication plan needs to be developed to:
• Maintain levels of support and receptiveness where the current levels
are equal to or better than the target.
• Enhance levels of support and receptiveness where the current levels
are lower than the target.
• The communication plan defines the messages the stakeholder will
receive and the messenger. The project manager is not limited to
delivering messages him / her self, other members of the project
team and / or other supportive managers may receive a better
‘hearing’ from the stakeholder.
Communication Model
Communication Plan
 Audit
• An audit is a systematic evidence gathering process.
• Non-financial audits of systems and processes involve periodic verifications to
verify that a documented management system or industrial process is being
effectively implemented.
• Audits help validate compliance with regulatory requirements and industry
standards. They can also be used as an information tool to drive better business
decisions.
• Any subject matter may be audited.
• Audits provide third-party assurance to various stakeholders that the subject
matter is free from material misstatement.
• The term is most frequently applied to audits of the financial information relating
to a legal person.
• Other areas which are commonly audited include compliance audit, internal
controls, Asset Management, Quality Management, Project Management, EHS
management, and energy conservation.
 Asset Management
• Asset management is about deriving value, and what is done with and
to the assets in realizing the optimal value.
• Asset management involves the balancing of costs, opportunities and
risks against the desired performance of assets.
• The balancing might need to be considered over different timeframes.
• Asset management supports the realization of value while balancing
financial, environmental and social benefits, called triple bottom line.
• ISO 55000 defines Asset Management as
• “The coordinated activity of an organization to realise value from
assets”
 Asset Management principles

• Value
• Alignment
• Leadership
• Assurance
• Life cycle activities
• Asset management decision making
• Risk based
Asset Management value creation
Alignment
 Assurance
• Assets will fulfil their required purpose, asset management activities
will be delivered, and asset management objectives achieved
consistently and sustainably over time.
• Life cycle includes all aspects of managing assets from the initial
concept through to disposal.
• Asset management requires integration of activities across the whole
life cycle not just consideration of individual life cycle stages.
Asset Lifecycle
Asset Lifecycle Cost
Maintenance decision-making
 Risk & Asset management
• Risk is an essential underpinning concept and discipline for asset
management, informing many decisions and providing a mechanism for
managing uncertainty in a controlled way.
• Organisations have to put in place systematic processes and methodologies
to identify, assess and manage asset-related risks and the results are used
to improve the asset management system.
• This approach has two dimensions – how to ‘do’ risk, and how to ‘use’ risk
in asset management.
• Risk assessment is an effective way of understanding both what can happen
to an asset throughout its life-cycle and that risks sometimes affect only
one stage in the lifecycle or can influence other life-cycle stages.
• It includes the identification, assessment, prioritization and treatment of
risks to reduce, monitor, and control the probability and/or consequences
of unwanted events or to maximise the realisation of opportunities.
Risk management across Asset Lifecycle
Control project management risks
Capex/Opex cost-risk trade off

Control project requirement risks

Capex/Opex cost-risk trade off

Control operation & maintenance risks

Maintenance cost-risk trade off

Control access, resource & duration risks

Resource & access cost-risk trade off

Control incident & emergency risks

Insurance cost-risk trade off

Control disposal risks

Maintain / renew cost-risk trade off
 Asset management System

M&R plays a
critical role
ISO-55001 Elements
 ASSET STRATEGY AND PERFORMANCE MANAGEMENT

Asset Information

Risk & Criticality Assessment

Criticality
A/B/C

Reliability Centered Failure Modes and Risk Based Inspections

Recommendations
Maintenance (RCM) Effects Analysis (FMEA) (RBI)**
proactive
Preventive Maintenance
Review (PMR)
Root Cause Analysis
(RCA)*
reactive

Corrective Actions, Work Maintenance

Analyze and Improve History, Incidents, Bad Management System
Actors
 ASSET STRATEGY AND PERFORMANCE MANAGEMENT
Define the Asset Identify Critical Perform Analysis Develop Execute Monitor
Register Assets Recommended Recommendations and
Use proven
Asset Central Actions Improve
The Risk and methodologies to Preventive
Foundation provides Criticality identify the optimal An outcome of Maintenance Cloud reports
the master data layer assessment ranks maintenance RCM/FMEA will be Review (PMR) can be used to
to model the asset assets by risk and strategies for your Recommendations application monitor the
register. criticality which can assets like: for preventive manages the performance
This can be modelled then be used to and/or corrective recommendations and
Reliability Centered effectiveness of
utilizing templates segment the assets tasks. to create published
Maintenance the
based on industry as the basis for instructions.
(RCM) maintenance
standards e.g. further analysis.
Active strategies.
ISO14224. Failure Modes and
This is achieved by Recommendations
Effects Analysis
Master data objects setting up a matrix generate
(FMEA)
include: models, of consequence of Notifications plus
equipment, locations, failure vs Checklists Risk Instructions (Task
systems, groups, probability of Based Lists) in SAP or
spare parts, failure. ECC Plant
Inspection** (RBI),
documents, Maintenance.*
instructions, failure Root Cause
modes. Analysis* (RCA)

ADOPT A RISK BASED APPROACH TO DETERMINE CRITICAL ASSETS DRIVING OPTIMAL ASSET STRATEGIES
MANAGEMENT AND BUSINESS SUMMARY

Clear Clear M&R goals and targets linked to business objectives

Create Create a cross department culture and values

Undertake Undertake gap analysis and benchmarking

Develop Develop business case and project plan

Manage &
Manage & sustain change
Sustain

Understand Understand M&R in context of Asset Management

Identify &
Identify & Manage Risk
Manage

Measure Measure performance and communicate success

 Pillar 1 Metrics Appendix
Metric 1.1 Ratio of Replacement Asset Value (RAV) to Craft-Wage Headcount
Metric 1.3 Maintenance Unit Cost
Metric 1.4 Stocked Maintenance, Repair And Operating Materials (Mro)
Inventory Value As A Percent Of Replacement Asset Value (Rav)
Metric 1.5 Total Maintenance Cost As A Percent Of Replacement Asset Value
(RAV)
Question 1
1. Organization culture
a. It refers to a set of beliefs, values and attitudes shared by everyone in the organization.
b. It refers to the way in which organizations are managed.
c. Both A&B
d. None
Question 2
2. A mission statement is a statement of an organization is:
a. Structure
b. Roles and responsibilities
c. Purpose—what the organization wants to do
d. Net worth
Question 3
3. Who is a stakeholder?
a. A person responsible for preparing the project budget
b. A person or organization that can affect, be affected by, or believe to be affected by a decision
or activity
c. A person or organization that performs/supports change management to make a new
improvement project succeed
d. A person or organization that is not involved in the project and whose interest will not be affected
by the completion of the project
Question 4
4. What does a change agent do?
a. Supports change
b. Initiates change
c. Opposes change
d. Helps implement change
Question 5
5. The objective of business case is to
a. Update the stakeholders on the current year status of achieving the objectives.
b. Summarise the business opportunities
c. inform key stakeholders about an initiative and convince them to support it.
d. Project only the preferred option of the person preparing the business case
Question 6
6. Which best describes the difference between mission and strategy?
a. The mission sets goals for the board of directors while the strategy sets targets for managers.
b. The mission includes objectives for the next five years whereas the strategy sets them out for just
the year ahead.
c. Mission sets the vision of a business while strategy sets out the plan to achieve the mission.
d. The mission describes the business plan in words while the strategy sets it out in numbers.
Question 7
7. What is a lagging performance indicator?
a. An indicator that can anticipate future performance
b. Delayed reporting of performance
c. An indicator that highlights past performance
d. An indicator that depends on another performance measure
Question 8
8. A KPI is
a. Key Performance Indicator
b. Key Personnel Information
c. Key process Information
d. Key Point Indicator
Question 9
9. An audit is
a. A systematic, evidence gathering process
b. A tool to validate compliance with regulatory requirements and industry standards.
c. Can be used as an information tool to drive better business decisions.
d. All of the above
Question 10
10. While managing stakeholders with high influence and high interest, we need to
a. Keep them informed
b. Keep them satisfied
c. Monitor them periodically.
d. Manage them Closely
Question 11
11. SWOT analysis is a useful tool, while formulating strategies. The ‘O’ stands for
a. Operations
b. Opportunities
c. Other considerations
d. Own strength
Question 12
12. The ISO standard for Asset Management System is
a. ISO 27000
b. ISO 55001
c. ISO 31000
d. ISO 50001
Question 13
13. PROSCI ADKAR model relates to
a. Performance management
b. Sustainability goals
c. Change management
d. Information management
Question 14
14. Which concept recognizes that ‘money now’ is worth more than ‘money in the future’?
a. Net present value.
b. Internal rate of return.
c. Deferred income
d. None of the above
Question 15
15. An effective communication plan contains three elements; two of them are sender and receiver;
what is the third element?
a. Medium
b. Frequency
c. Message
d. All of the above
Answer Key
1. A 11. B
2. C 12. B
3. B 13. C

4. D 14. A
15. C
5. C
6. C
7. C
8. A
9. D
10.B
END OF PILLAR-1