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  • 1.  New food manufacturing facility maintenance/spare parts budget

    Posted 05-30-2023 12:24 PM

    I'm building out the Reliability program at a new food manufacturing facility in Colorado. We don't have a maintenance manager as our Plant Manager thinks it isn't needed as we're building out a TPM program. As such, I find myself trying to get ahead on maintenance budget estimates to provide justification for stocking higher numbers of critical spares (plant has no redundancy on most of the food production line). Are there any industry rules of thumb for maintenance budget/spare parts budgets at food plants in terms of % RAV or something similar?

    Regards,
    Brian Sinclair



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    Brian Sinclair
    Thornton CO
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  • 2.  RE: New food manufacturing facility maintenance/spare parts budget

    Posted 05-30-2023 12:49 PM
    Edited by Dominick Cinefro 05-30-2023 12:53 PM

    I am in a similar situation but in the metals industry. Building a M&R program without critical spares, maintenance team, or historical backlog of failures. I am basing half my work from Ramesh's Guidelines and the other based on tribal knowledge in the plant.

    From M&R Best Practices:
    I don't work in Food and Beverage so I would assume your percentages would be higher.



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    Dominick Cinefro
    Mazzella / Sheffield Metals Operations Engineer
    Denver CO
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  • 3.  RE: New food manufacturing facility maintenance/spare parts budget

    Posted 05-31-2023 08:12 AM
    Brian - 

    Good morning.  

    In the SMRP Body of Knowledge look at 1.4 Stocked Maintenance Repair, and Op Materials (MRO) Inventory as % of RAV. Pay special attention to the caution at the end. 

    Here is my personal experience from two vastly different food manufacturing facilities. Total annual maintenance spend to RAV and MRO to RAV

    In a large liquid batch process facility (pumps, pipes, valves, and vessels) heavily automated. We were on the low side of this around 1.5%. Stocked inventory as around 2-3% of RAV

    At a more traditional food mfr facility (raw material grind/blend, form, cook, freeze, bag) with individual cell automation we were a little higher and closer to the middle of the best practices estimate, around 4%. I'm not sure what our inventory to RAV was, but I'm assuming it was in the 1%-1.5% range. Improvement projects were often centered around development of equipment standards towards installed equipment consolidation. We also had a fantastic planner and maintenance superintendent, and incredibly supportive maintenance/operations/plant mgmt.

    Both facilities were well run, efficient, productive, and safe. Probably not world class, but very solid facilities. 

    As you start chipping away towards making a plan more productive you can approach problems from multiple directions. 
    - Efficiency, getting more sellable product out of the uptime you have. 
    - Reliability, keeping equipment running - don't let it break. 
    - Maintainability, make it easier and quicker to fix when it does break (documentation, procedures, MRO mgmt, training)


    Rhetorical questions to consider: 
    What is the ultimate objective of your "reliability" program? 
     - You aren't going to fix everything overnight. Find a couple areas to address, get others involved, and start making daily progress. 
    Is your plant currently at capacity? 
    How confident are you in the data behind your RAV calculation? 
    How confident are you in the data feeding into your "maintenance cost" 
    What is your maintenance cost per unit of product? 

    Library Additions: 
    John Ross - 2 Books, *LinkedIn Follow, MRO Processes and Metrics Specialist
    Ron Moore - What Tool When, Common Sense Common Practice
    Doc Palmer - Maintenance Planning & Scheduling 
    John Reeve - Failure Modes to Failure Codes *Great LinkedIn follow as well

    Hope this helps! 
    Feel free to give me a call if you would like a sounding board. 

    --
    Eric J. Foreman
    SMRP NE/IA Education & Communication Director
    Cedar Rapids, Iowa 
    Mobile - (319) 777-2555







  • 4.  RE: New food manufacturing facility maintenance/spare parts budget

    Posted 05-31-2023 09:24 AM

    Hi Brian 

    To me, basically there is no a rule of thumb to estimate MRO inventory, but it depends merely on history data, and if there is a lack of such data then an aggressive FMEA is quite important to estimate the consequences, and decide if to keep the parts in the stock, or take the risk of procuring at the failure moments.
    Both decisions have a financial impact but the top management has to decide which path they prefer to choose.

    Thanks


     



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    AHMEDELMUKHTAR MOHAMMED BEng
    Diesel Service Manager
    GENERAL AUTOMOTIVE COMPANY AUTOSTAR
    Riyadh
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