PepsiCo Maintenance Methodology - PeMM

Diagnostic to keep score of AM / PM

Document Title Goes Here 1

PepsiCo Confidential
 Elements of Engineering Maintenance

Equipment
People Knowledge Skills (Tools/Spares/ Funds
Consumables)

Effective &
Systems Tools Productive
Maintenance

Culture

PepsiCo Confidential 2
 AMENA Maintenance & Reliability Roadmap
Comprehensive Approach to Create ‘Sustained Reliability’
AMENA Maintenance & Reliability Roadmap
Comprehensive Approach to Create ‘Sustained Reliability’
Strategy Elements
PepsiCo Maintenance Methodology (PeMM) – A diagnostic
Measure maintenance maturity of to evaluate the maintenance maturity / capability of sites
sites using standard diagnostic and
Vision 1 Capability
build frontline maintenance
capability
Train PeMM assessors, improve technical skills across the
Sector through standard training modules

SAP PM to capture machine history and maintenance spends

Computerized
2 Maintenance
Implement PepsiCo standard CMMS
for managing breakdowns and PeMM
and to manage work orders

Management planned maintenance Global monthly maintenance scorecard and performance reports

Mission Operator asset care through cleaning, lubrication and

• Minimize Implement asset care program using elimination of abnormalities, aimed at reducing minor stops
Maintenance
unscheduled 3 Program
autonomous (AM) & planned (PM)
maintenance pillars of TPM Global monthly maintenance
Specialized scorecard
maintenance and performance
by technicians / OEMs reports
to prevent
downtime in 5
major failures
years
• Reduce spare Globally recommended inventory management processes and ‘do
parts inventory better & different’ initiatives to reduce spare parts inventory
YoY 4 Spare Parts Implement PepsiCo recommended
Program inventory management programs
CMMS
Global monthly inventory scorecard
TPM

PepsiCo Confidential 3
 AMENA MOS M&R Strategy

The approach :

• Develop a Sustainable Strategy that combines all

the tools and programs
• Highlight the benefits of each step, define the
expectations and outcome
• Develop exit criteria for each step and success
Brilliant Factory measures
• Identify the sequence of the steps, the
prerequisites, successors and expected time lines

• Defines the relations between steps in different

programs to maximize the gain
• Automate M&R KPI’s to facilitate monitoring
• Lay correct foundation to Brilliant factory
Journey.

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 AMENA MOS M&R Strategy – Overview

Develop an M&R Implantation model that utilizes available LEAN Tools and Systems in an
organized sequence to Maximize the Value Realization & Reduce Waste

TPM PeMM Spare parts Cleansing

1
Basic

CMMS 2
Foundation

DVC
SFT
PH1 3
Automation

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 AMENA MOS
R&M Strategy (Implementation Catalogue)

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 Maintenance & Reliability
A robust program has been set in motion

Tactics
Programs Stages of Maintenance Development

ea rs”
Adopt PeMM to keep 5 y
e in
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In n ov Innovative Class
e to ),
iv PM
ac t
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Embed SAP PM as CMMS “R PM
h T PeM
M TE impact - $
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nsitio score
r a
“T and
Launch TPM elements
AM/PM in all markets

Establish M&R roles, build

capability

Integrate new capacities

through Early
Management

PepsiCo Confidential 10
 PeMM Maturity Stages

Legislative Compliance Reactive Maintenance Planned Maintenance Predictive Maintenance

Downtime
Cost

REACTIVE CONTROL INNOVATIVE WORLD CLASS

Planned Reliability
Maintenance as per Engineering - Move
Fix it after it has Fix it just before it
OEM & recording from calendar to
broken! breaks!
breakdown info to condition based
add in PMs maintenance.
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 PeMM is based on a ‘Value Model’ and a
‘Competence Model’

• The competencies of a maintenance organization are logically grouped towards the 4 value drivers
• The value driver analysis gives you the necessary focus on which competencies have to be improved
• The competence model is the umbrella for the benchmark, the improvement agenda and the use of best
practices

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 PeMM is based on 10 KAIs/KPIs

KPI Definition

Maintenance Costs / CARV (%) Total maintenance costs (R&M and labour) divided by the replacement value of the
production facility (equipment and equipment related buildings)
Technical Availability (%) Total available time for production minus the downtime caused by maintenance divided
by the total available time for production (all measured per annum)
SHE Factor Average of GEHSMS & AIB Score in % .

Preventative Maintenance Costs of preventative maintenance (R&M and labour) divided by total maintenance
Costs / Total Maintenance Costs costs
(%)
Planned work compliance (%) Number of work orders with a completion date that is equal to or less than the
scheduled completion date divided by the total number of work orders
Technician Utilisation (%) Total number of technicians hours entered on equipment related work orders divided by
the total working hours of the technicians per annum
Stock Inventory Value / CARV Total value of spare parts and repairables on stock divided by the replacement value of
(%) the production facility (equipment and equipment related buildings)

Outsourced Maintenance Costs of outsourced maintenance (services by contractor including material usage)
Costs / Total Maintenance Costs divided by the total maintenance costs
(%)
Cost Training / Salary Costs (%) Cost of training and education divided by the total labour costs of the maintenance
organisation
Reliability Technical Number of technical drawings and documents that represent the actual situation of the
Documentation equipment divided by the total number of technical drawings and documents

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 PeMM Process – 4 phases

• Collect site data • Carry out interviews

• Calculate kpi’s • Collect hot & bright spots
• Feedback all findings

1. Collect 2. Audit
Data Phase

4.
• Align MIAP to AOP & PDR’s • Vision session with site
• Report kpi’s in ScoreCard
Do it & 3. MIAP
team
Follow Up
• Set up MIAP Follow Up sessions (internal
Phase • Discuss hot spots
and with RET) • Set new targets
• Review Best Practice implementation • Identify Best Practices
from library
• Develop MIAP

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 PeMM KPIs and Business Process Model

PEMM KPIs Value Max Avg Min

1. Maintenance Costs / CARV (%) 6.68 4.55 3.05 2.00

2. Technical Availability (%) 68% 98 91 84

3. HSE Factor 4.79 5 3.5 1.5

4. Preventative Maintenance
Costs / Total Maintenance Costs 40.0 86 46.8 16
(%)

5. Planned work compliance (%) 83.0 95 77.5 46

6. Technician Utilisation (%) 60 88 72.5 60

7. Inventory Value / CARV (%) 2.06 3.85 1.95 0.11

8. Outsourced Maintenance Costs

/ Total Maintenance Costs (%) 16.5 60 24 2

9. Cost Training /Salary Costs (%) 6.9 6.49 2.53 0.34

10. Reliability Technical

Documentation 90 95 78.2 30

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 Scoring

Maintenance Business Process KPI # Questions Max Points Your Points Score (%) Status % Of Score

1 Asset Utilisation Techn. Availability 12 60 33.25 55% Innovative 8.6%

2 Cost Control Maint costs / CARV 9 45 21.50 48% Control 6.5%

EHS Planning
3 EHS 8 56 28.28 51% Control 8.0%
Compliance
Prev Maint.
4 Reliability Engineering 15 105 32.90 31% Reactive 15.1%
costs/Total Costs

5 Planning preparation Planning Compliance 21 147 16.80 11% Reactive 21.1%

6 Maintenance Execution Techn. Utilisation 7 105 18.00 17% Reactive 15.1%

Inventory
7 Stock Inventory Management 23 69 32.42 47% Control 9.9%
Value/CARV
Outside costs / Total
8 Service Supply Chain Management 8 40 13.50 34% Reactive 5.7%
costs
Training costs /
9 Skill Management 9 45 17.50 39% Reactive 6.5%
Salary costs
Reliability techn
10 Equipment Knowledge Management 5 25 6.00 24% Reactive 3.6%
documentation
Total 117 697 220 31.59% Reactive

Per VALUE DRIVER # Questions Total Score Audit Points Audit Score Status
1 EHS Management 8 56 28.28 51% Control
2 Asset Utilisation 34 239 67.10 28% Reactive
3 Cost Control 31 224 55.35 25% Reactive
4 Resource Management 45 179 69.42 39% Reactive
Total 117 697 220 32% Reactive

Reactive <40% Control 40 - 55% Innovative 56 - 75% World Class >75%

The findings of the interviews are used to score each question within the Maintenance Business Process.
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 PeMM Capabilities by Category

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 Description of Maintenance Stages…

Workstream Area Reactive Control Innovative World Class

• Not ‘Like New’ • Getting restored • Program in place • Sustain like new
• Equipment Condition • > 100 pts lost • 50-100 pts lost • <50 pts lost • No points lost
• Site Condition :AIB Maint issue • < 30% • 30% - 50% • 50% - 80% • 80% - 100%
1 Asset Utilisation
• DT Data Analysed (% of total) • >5% UPD > 5% PD • <5% UPD < 4% PD • <2,5% UPD <3,5%PD • < 1,5% UPD <2,5% PD
• Technical Availability

• Equipment cost review • Absent • Weekly-Spares • Daily – Spares • Daily spare/labor

2 Cost Control • Activity based budgeting • Absent • Site level • Line Level • Equipment level
• Consignment stock • <2% of stk value • >2% and static • >2% and increasing • >10%

3 HSE • Composite Pepsi Safety program • 0-2 • 2-2.75 • 2.75 – 3.75 • 3.75 – 5
audit score (0 – 5)
• Absent • Applied on new • >70% of stock • 100%
• Inventory criticality • Absent • Bottleneck eqpt • 100% equipment • Reviewed annual
Reliability • Equipment criticality • Adhoc • Annual • Annual- using RCM • Quarterly
4 Engineering • PM task effectiveness review • <50% • 50-75% • 75% • 100%
• Root Cause Analysis of failures

• PM / CM ratio • PM < 60% • PM 60-70% • PM 70-80% • >80% sustain

Planning
5 preparation • Backlog WO > 30 days • >5% • 2-5% • <2% • <1%
• PM Compliance • <50% • 50-75% • 75-95% • >95%
Maintenance • Techn. Utilisation on PM • <20% of time • 20-35% • 35-50% • >50%
6 Execution • Parts linked to WO • <80% • 80 – 90% • 90-98% • >98%

• Stock availability • < 90% • 90-95% • 95-98% • 99%

Stock Inventory • >3% • >2% • >1% • Nil
7 Management • Missing stock
• Inventory / CARV • <0.8% >1.7% • 0.8% to 1.7% • 0.9% to 1.6% • 1.0% to 1.5%

• 0 • >2% of stock val • >5% of stock val • >10%

Service Supply • Rate contract for spares • Adhoc • 1 alternate sourc • 2 • 3 or more
8 Chain Manage • Productivity-alternate sourcing • none • 1 OEM • 2-3 OEM’s • 4 or more
• SLA

• 3 or less roles • 4 roles • 5 roles • 5 roles for 2 yrs

9 Skill Management • Alignment with global org
• none • Only for staff • For all • For all > 2 yrs
• Competency & Training matrix
Equip. Know • % of equipment with drawings and • <60% • >80% • >90% • 100%
10 Manage manuals

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Maintenance Improvement Action Plan

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 Planning Preparation

Purpose Scoring Outcome

 Evaluate PM planning process  21 questions
at site  147 points  Improve Control on Reliability
 1.4 weightage through Planned Maintenance
over Reactive Maintenance

Focus areas & Key points

Strategy
• Does the site have a Maintenance Strategy?
• What are condition monitoring practices ?
• Lubrication plans
• Regulatory work management
Process
• Equipment numbering
• Work order system KAI
• Spares planning and linking to work order
• Code usage  Planned work compliance
• Task reviews  Planned vs Reactive
• Change management  % Back log
Process execution
• Maintenance resource planning KPI
• Weekly / Daily planning
• Work order system
 Technician Productivity
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 Maintenance Execution & Reliability Engg
Purpose Scoring Outcome
 7 /15 questions
• 105 points each
 Review Asset management  Reliability improvement &
 Weightage 3 /1.4
including spares ( working Productivity through
Execution / Reliability Engg
capital equipment up time
respectively

Focus areas & Key points

Resource s
• Asset care team availability
• Skill s mapped to tasks
• Engineer’s productivity- How well engineer’s time is spent?
Process
• Quality of work order documentation
• Equipment criticality
• Work order vs spares used KAI
• Capture of outsourced costs
 Engineering score cards
• 5 S audits
 5S audit score
• Condition monitoring usage
Reliability improvement
• MTBF & MTTR use
• Reliability centred maintenance practices
KPI
• Continuous improvement practices  Engineer’s productivity
• RCA process – Use of failure codes  MTBF /MTTR improvement
• ABC analysis  Productivity through
• External vendor engagement improvements
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 Asset utilization & Stock Inventory management
Purpose Scoring Outcome
 Assess Execution practices  12 /23 questions
 Evaluate Spares stores 60/69 points each  Working capital improvement
management  Weightage 1 /0.6  Meetings & Record keeping
Asset Utilisation/ Stock efficacy
inventory management respectively

Focus areas & Key points

Plant
• Intra and Inter departmental engagement
• Shift handovers
• Operational loses record and review
• Breakdown management
• Awareness of processes
• Site physical audit
Spares KAI
• Inventory Score Card
• Master data quality  Asset Utilisaiton:
• Spares criticality analysis – Min/Max  Review meetings /
• Stock analysis Records
• New additions  Stock management
• Stock availability  Physical stock verification
• Stock adjustments
KPI
• 5S /Layout & Numbering
• Material segregation for different stages of material
• Storage – Ways of handling components  Inventory score card
• Bin cards PepsiCo Confidential 22
 Cost control & Service Supply Chain management
Purpose Scoring Outcome

 9 / 8 questions
 Assess Cost management  Cost Productivity
45/40 points each
systems
 Weightage 1 for both

Focus areas & Key points

Cost
• Equipment wide cost tracking
• Labour costs monitoring
• Cost pre estimation
• Asset based costing for budgets
• Consignment stock practices
KAI
Services  Cost control:
• Contractor approval process  Cost pre estimation
• Blanket purchase orders  Zero based budgeting
• Legalised agreements  Services
• Service level tracking  Vendor evaluation
• Contractor management
• Vendor evaluation
• Explore productivity opportunities KPI

 Cost / Cs or kg
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 Skill, Equipment knowledge management and EH&S
Purpose Scoring Outcome

 9 / 8 / 5 questions
 Assess support systems / safety  Capable resources
45 / 40 / 25 points each
performance  Food safe plant
 Weightage 1 each

Focus areas & Key points

Skills
• Maintenance organization structure
• PDR approach including technicians
• Skill Matrix
• Automation management

Knowledge KAI
• Site wide KPI awareness
• Starfleet approach – Lift & Shift practices  Skills:
• Engineering documentation  PDR
• Safety documentation  EH&S
• Engineering standards availability  Site audits

EH&S KPI
• Food Safety and EH&S requirements in PM tasks
 Equipment knowledge
• Legal requirements knowledge practices adherence
 AIB score
• AIB & GEHSMS scores
 GEHSMS score
• Site audits PepsiCo Confidential 24
Thank you

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