Plant Services - February 2008 - (Page 11)

KEN SChNEPF THE PS FILES Sharing leads to savings Cooperative model for managing maintenance inventories can help reduce costs A to export, and the market is far away. This is a great example s Americans, we tend to value our individuality, of an organization that has made it possible to share hard a characteristic that defines us as a people. This is work and investment in areas where you really don’t need especially true in business: Differentiation from to compete.” Technicians access maintenance data through competitors is a key selling point in most industries, and it a portal on SSG’s Web site, which allows them to see othcan define a company’s culture as well. er mills’ inventory. To eliminate any confusion, they use a But, what if sharing, cooperating and being on the same spare parts naming standard based on the United Nations page with your competitors could save your company big Standard Products and Services Code (UNSPSC, www.unbucks? Would you be willing to standardize the way you spsc.org) so participating companies can mask their namrun your maintenance operation – namely, how you invening standards. Each mill can see which spare tory your parts – and work with other compaparts are in the collective inventory because nies that have the same interests as yours if it The two-year they use the same naming conventions. “The would result in significant savings? Standard Solutions Group (SSG), Sundsfeasibility study standard is stronger the more companies accept it,” Lif says. vall, Sweden (www.ssg.se), has been using a … gleaned SSG and IFS are extending their efforts cooperative model for managing maintenance an average outside the pulp and paper industry. “Steel and inventories since 1968, and has delivered big inventory cost mining, for example, don’t have the same culresults for a group of Swedish pulp, paper and steel companies. With 40 years of experience savings of 57%. ture as the pulp and paper industry,” Berggren says. “It’s a new way of thinking; you have to under their belts, SSG is looking to expand want to cooperate. But it’s a very good system to a larger pilot program within the process inprovide benefits to the end customer.” Lif adds, “In Sweden, dustry in Europe – and beyond, and is now working in the there are flat organizations and everyone is used to sharmining and steel industries. ing. You’re almost naïve when you come out into the rest of Jonas Berggren, CEO of SSG, says the group’s work with the world. Sharing information is just positive for everyone the aforementioned pulp and paper plants, and the resultant involved, but you have to trust each other. You have to have pooling of their maintenance inventories and use of predicbuy-in from the major companies involved.” The result can tive maintenance management practices reduces capital tied be dramatically lower cost without compromising your serup in maintenance inventory by as much as 68%. vice level or security level, Berggren says. SSG has maintained a database of its customers’ mainteThe two-year feasibility study, which began in 2005 and innance inventories and keeps track of the availability of more cluded three Swedish pulp and paper companies, gleaned an than 550,000 parts. Because these pulp, paper and steel average cost savings of 57% for certain inventory parts, minicompanies are a great distance from many of the suppliers mum cost savings of 49% and a total reduction of 68% in workthey rely on, there’s a particular benefit in borrowing parts ing capital tied up in maintenance inventory. SSG is ramping from each others’ inventories rather than facing long periods up to a larger pilot that it began working on this year. of downtime should they need a replacement in a jiffy. Berggren acknowledges that not every industry will be In addition to the efficiencies gained from sharing, SSG amenable to this level of cooperation. “In some industries, also has armed itself with predictive maintenance technolthere could be cultural issues with this type of collaboraogy. Two years ago, the group began a pilot program to intive model,” he says. The benefits are numerous, but are they tegrate its shared maintenance inventory database with the enough to overcome our tendency as Americans, and induspredictive maintenance functionality within IFS Applicatry, to want to go it alone? tions (www.ifsworld.com/us/). “The atmosphere in Sweden is unique,” says IFS Global Industry Director Anders Lif. “Pulp and paper is expensive E-mail Managing Editor Lisa Towers at ltowers@putman.net. www.PLANTSERVICES.com 11 February 2008 http://www.unspsc.org http://www.unspsc.org http://www.ssg.se http://www.ifsworld.com/us/ http://www.PLANTSERVICES.com

Table of Contents Feed for the Digital Edition of Plant Services - February 2008

Plant Services - February 2008 Contents From the Editor Letters The PS Files Up and Running Crisis Corner What Works Asset Manager: Why Six Sigma? Technology Toolbox: Ensuring a Calm Response Cover Story: Best Practices Awards Lubricants: A Slick Success Story Motors: Reliable Torque Compressors: Before You Call for Help Web Hunter: Exploiting Intellectual Capital In the Trenches Product Picks Classifieds Fast Facts Energy Expert: Energy, Climate and Food

Plant Services - February 2008

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