you Good morning, everyone. My name is Sean Roger. I'm the ask principal Asset Management Solutions engineer here at Pinnacle and I'm here today to talk to you about five steps to justify your reliability Improvement initiatives a little background on myself. I've been in the operations maintenance and reliable space now for about 25 years started my career out working in chemical industry. I was a process engineer and then move my way into I mean this management role and so Health Services in the name this world and then we're living in operations role and operations manager and then for the past 15 years. I've been helping clients and several Industries on the contract side implementing and improving their reliability and maintenance programs. So I'm happy to be here to talk to you all about our topic today and let's go get started. So just So as you all know right on industry, you know, everybody's generally facing some pretty unprecedented economic challenges right now, obviously with the outbreak of covid-19 virus and hope it and you know resources are kind of days, you know, so I think this topic is more relevant than ever as as the general landscape the industry is so you know, but that being said back when I was asked to start to give this presentation, you know, so let's go I really started to think about you know, what I'm gonna talk about it as you go. So you start thinking about you know, how's it going to presented what I want to talk about that thing, you know, so I really keep coming back to the fact about you know, what it was like when I was turned down for an initiative when I really my career. Okay, so, you know, that's true story with you know, again I said it was running back in my career. You know, I was young engineer. I just moved into the maintenance role here and you know quickly realize that there were several areas that we had for improvement that we can work on. So I got my team together we start putting this big master plan about what we wanted to do on this and for that what and From there we put together, you know put together a big presentation, you know invited all the decision makers to a big meeting at all. We said we're out and everyone present everything and hope it and went through the presentation, you know before I knocked it out of the park, you know, it was basically standing there with my handout saying Hey, listen, I'm ready to get these things done. Let's get to go ahead right, but that's when I really started to really realize this from the question started roll in okay, you know around you know, especially on things that I covered pretty well said the presentation, but apparently I am not. Okay and what I really found out was that I really was the mark on how to justify using resources to these programs. So went back to my office and I sat down and over the next several days. It started really think about why I was turned down for these things. So I also started the same time started to get really informal feedback, you know to back channels around the meeting how it went which was extremely helpful, you know for you are as a feedback and basically what I found out was that I was just providing management team with the information that they needed to go Justified using these resources to their bosses. Okay, so I knew this is going to be a major part of my career going forward. So I wanted to obviously learn more about how to do this better in the future. So So I didn't start to study this and basically what it comes down to is that when you when you really want to do an initiative like this right here or do is justification. Like it's really five steps. You need to go through and look at for you justification. So we'll get into each one. I'm now so the first one here is on reflecting on your birds. Now, you know I mentioned before you know, that pretty fortunate by the fact that I get to go out and working a lot of different facilities and a lot of different Industries and whatnot. And you know when I'm out in Plants, I don't have conversations with people there around you know, they want to some kind of assessment or they've been actually been denied something for initiative that they want to do for some reason and conversation. You know, I bring up the question around. Okay. Tell me what your goal was that's back and many times I find out the answers are very vague. Well this point or sometimes they're actually completely different and what's the actual request was so Yeah, I'll give you an example. I was actually speaking with a good friend of mine back not too long ago and he was telling me about the struggles. They're having about getting approval to do a lot of initiatives and facilities and and probably say one to do and go through some of the same question. Basically what he found out was that their team was focusing on justifications around saving money through operational efficiency. Okay, but in reality the business goals was focusing around up time and delivery of the product, you know, they're looking at things like how it impacted our customer confidence, you know, these types of things. So the two were separated and what they were the goals are aligned was and that's why he was projects tonight. Place. So the question we're expecting on your purpose is what do you what are you really trying to solve? You know going back to my story. I miss earlier. I had all these appointment solutions that I wanted to go out and do but I really did not articulate the purpose of what we're trying to accomplish. right So tell there's three points of this that you really need to look at what you're going through and talking about when you reflect on your purpose. The first thing is both an identified strong value statement and the purpose behind each action. Okay. The second one is ask questions, you know. Yeah talk with people in the decision making roles to understand there are points of views, you know, even if the person that you're talking with is not the actual decision maker, they might be private information that will help you building your plan and how you want to present it. Right and certainly don't bite off more than you can shoot. You know, it's it's very it's very difficult for people to see the big picture on a lot of things that are massive whatever you want to go through break it down in the segments. We'll talk more about that a little bit later. So the second one is a step in just find your initiative here is measure your opportunities. The basins of this right here is data data and data find someone if you have cold hard data as the absolute best way that you can communicate the reason why you want to do the initial. principle Now when we start talking about data the first, you know, the first place most people go is talk about Benchmark. Okay, and doing some works are great. There's a place for them and they and in whether using they have a lot of power to go along with it. but there's more to it than just Benchmark. Okay, I mean for instance don't just go inside and into say Hey, listen, we're going to save us this x amount of money go in and actually back it up with quantifiable data. Okay. So what I mean by this is, you know don't want to say stuff like, you know, Hey, listen, I'm going to That X number of maintenance hours is different how many workers and processed or this type of thing, you know go in there include more insightful metrics around how you understand know the backstory of the opportunities, but how it's going to infect the entire picture of sodium. Okay. So for example instead of just Gathering number work orders Etc and say, you know What you want to look at there will an extra mile and give an example? Okay. So take this point. What if I came to you and I said listen, I gather all the data for the specific assets. I mean, I'd rather my vibration data. I've gathered my process primer data, you know, my phone stated, you know, all the things that go into this fair and I statistically calculated the probability of the assets that I'm one of the focus on it. Okay. So now I have a better understanding that's quantifiable data about the risk. It's involved with each one of these assets and then let's say that I want to know I built a small block diagram just around the assets. I want to work on you know, so you see the control volume it show that if I can do these initiatives importance for me just these access right here. This is how it's gonna fit the overall facility. Okay. So now I do things like what's gonna have availability all these other things and then once you get that one you can do all kinds of cool stuff with around saying Hey, listen Okay, this is you know, what was my spin for the last? You know a couple years what are my forecasting the spin this year? And oh, by the way with these improvements, this is how much improvement I think. So those are all examples of 10 what use tangible data? To help to measure your opportunities. And basically what you're doing now is you're painting the bigger picture for that opportunity, right? Dimension earlier about you know consider, you know, secondly segmenting your initiatives into subcategories. I mean, it helps you structure your topics and more effectively helps to provide the basis of the data from the justification, you know, I mean, there's this metrics for process control maintenance efficiencies tomorrow spares reliability, you can go on there. There's basically and when I go to look at them, there's about 20 to 21 different practices that you can recommend that I do this. So makes it a lot easier to digest when you break that Um, then you also going to have to go through and do things like, you know, prepare your initiatives what you want to do with the listing of all the other initiatives inside the plan to go through prioritize and understand the prerequisites of what not. So understanding where those are with it as well is a big help for getting your your measure your opportunities. Now quick note here. There are when you're going through and you are looking at your different, you know segments you want to look at. I mean look go identify your quick Finish First, you know call a living true color, whatever you want to at that point. But look at these ones are here since you can go through do first, you will confidence in credibility in your decision making and then go to the bigger initiatives. Okay, the big ones have longer 19 more complexity, but the quick wins are really powerful. So don't underestimate those. And we'll see you in the next one as we're going through on this the five steps is connecting value to Solutions. And basically what this is, this is Bridging the Gap between the solutions to the value, right? This is where most justifications all the fall short frankly, right? Unfortunately, you know, the second result most justification that's efforts are really nothing more than regurgitations of data that really don't equate to the value of the related solution going back to kind of what mine my original story to be any other about the point Solutions, okay. A couple points on this right here that really really need to emphasize on is one speak the language. Right, you know communication gaps being able to identify a common vernacular that all levels of your organization can can understand and relate to right. I'll give you there. It's real interesting that class here. I read a story in the Harvard Business Review. There's an article by gentleman Scott Bernardo that he is called the final mile. Okay, basically what the art of discuss was around why companies are not seeing the benefits that they're expecting in their data science organizations. Um, I thought the article was real real timely just about the fact that you know, you know, a lot of organizations are starting to move and explore more opportunities with artificial intelligence and machine learning and all these other aspects of you know, big data type things going with it. And you know, these these organizations are gonna be much more prevalent. And so so when you read the article when you go through it, basically the conclusion that they found out is that most data science groups are obviously very good at crunching numbers. Okay, they're technically the focus what they do, right, but they lack the ability to translate their findings and in terms of their value into a very concise message that can be understood by the decision making so this is what he said as the final mom taking that extra effort to be able to say this is what we did and this is the value it brings so they should the management team. Um, no oftentimes your maintenance reliability people fall into the same traps just because the fact that we process we know we press this once the data. We got a lot of things going on, you know, we're multitasking just a lot of tests same time. We see, you know, we see many areas where we need to improvements because we're living in every day, right? We're in Weeds that are however, you know, sometimes it's very difficult for us to go through and explain all the intricacies of the maintenance reliability opportunities, especially when people just live it every day like we you know, we're in the middle of you know, so speaking the same terminology in the same business decision matters that one couple of things that with that I mentioned at the beginning my story that I did not provide my manual with basically the ammunition to help them justify why they want to spend the resources to their bosses, right? You know, when we started looking at connecting the value Solutions, you know, one thing that I see a lot is the use of the return Roi right turn on this. You know, it's really starts the question about what does that really mean at that point? You know when you talk about people, you know, it's around Hey, listen, you know, this is a Roi means this is a person and you go different aspects but you know going back to the concept of using tangible quantifiable data to justify your improvements here with it, you know instead of saying hey, I'm gonna prove your Roi do things like, you know, I'm gonna check with internal rate return you are right and frankly the answer if your cost of cash is less than your Iran then you do the project. Very simple everyone, right? It's a tangible solution that you're that you're controlling you're playing. You know, that's all they live in with their they can see it by Major, you know, everybody can see that point of view the same Hey, listen, I see why we want to go do this what's gonna finish plan? Okay. The other one is payback. Okay pay back on scene is oftentimes calculator. If not coupled with other financials like net present value or the IR calculation what not? So be sure how they all come together to get really what these things look like. You might want to includes your indicators like profitability index, you know, we're just facility tracks and they look like now while building your justification Have a conversation with whoever has inside into what your Finance organization looks like what they track and what their modeling that's right what I mean by that is that there is that they can help you go through past people language as this point. Okay, because again, that's what you're trying to bridge that we can show the value of all these initials. The next step inside the improvements is building roadmap to your success when so you know, now we've talked about here around reflecting on your purpose that your opportunities connect your values to your Solutions. But now how are you doing? Right? No couple things with building your roadmap? Yes, you make sure you're here you be specific number one around tactical answers to specific value statements and their purpose find each one. Okay stands make sure you got good answers around that. Okay. I didn't find out why the prerequisites and steps you need to take to achieve that process the process, you know, are you going to track it how you gonna show value? How you want something puts them in the order that they need to happen prerequisite. Some people can clearly understand. This is why we need to go do things. This will always happens first. Then go through and tie all the solution you're proposing to their value statements. Okay. So in your bed, you can clearly see this is the order we're gonna do them this one and at this point, this is what we're going to Value we project we'll see the values inside of too many steps. The next one would be defining your bow post, you know. I know where your current state is today, and we're trying to drive chords, you know is yeah you that's important. I mean if without that why are you doing the initiative? Okay. This is this is where I recommending the benchmarking aspect really that's really more powerful things. Like you can see Hey listen, this is we want to try to get to this Benchmark on mobile. This is the value. We think it's going to come to the organization with these other metrics. Now, I want you to find and start your start endpoints. Then you can be in the building road now. Thanks and make sure you include everybody all the key stakeholders that are part of it, you know, and be sure that you focus on what I call the trilogy here. What is it, which is the technology the processes and people okay. It's amazing a lot of times how one of the three typically it's it's left out, you know. Um, yeah and probably also with two what you're looking at that point was there, you know, you'll focus on you know, just just how they're going to be also impact not just all three of those aspects are but also house can impact the other organizations around your group as you're going and how they all feed into your your initiative you're working in. Last up here on honor just fighting initiatives here a sustaining top performance, right? So now this is all just like I mentioned earlier about the sustaining year building your roadmap and your values with their this is also Mary where a lot of a lot of initiatives fall short. Okay, we can go through and we can build a program we put in place. But how are you going to sustain it over time there to get the value on going after you've done it? Right? Obviously, one of the biggest problems. Okay. This is also an area where you're going to need to have very tactical answers with details. Okay, just looks like ahead about the road map. Okay. I mean, it's not good enough to come outside and say Hey, listen, we're gonna train our people to workflow right? I mean that's never going to sustain our process. Yeah. So there are three primary areas when you do focus on trying to establish a sustainable performance, right? I mentioned the three products just people process and Technology. Nice often into a more considered. I can't I'm reiterating that again because that really happens. Okay. I'm giving example of that. And for instance you might be looking to improve your planning and scheduling process by enhancing your seamless capabilities. But let's say your new process when it's way longer to accomplish what you're trying to improve because you didn't take into account with the become people opponent. Was going to have the effect that was gonna have on your on the Improvement. Okay, and basically what time it's not sustained just because it's just not practical to do. Okay. I mean that's just one example, but don't understand these, you know considering all three of these components. There's another aspect of two you're looking at the same performance that I want to hit on as well, you know is around reflecting on yourself to make sure that are you ready to go through entire these initiative when you you know, what it is what you're really gonna be going in looking to do, you know, if you're the driver you're gonna be responsible for this. It's you're gonna take a lot of time really? Dedicate yourself to doing it. Thanks. So, you know, look at things around like, you know, you know, are you ready to go out and really you have the ability go through, you know talk about things like, you know walking the wall, you know, I mean you've already you know, it's interesting when you look at there's extra psychological studies out there that show the repetition on messages that translates to receive passion around a certain topic if you continually you know, the people see you walking your side you got the right attitude these types of things with, you know, makes a big difference like that stuff. So starting from that point to make sure that you're the driver there within you're saying it will help sustain these initials. And then you also talked about culture. Okay quite a bit and how we want how we want to go through and do some of these missions on you know, sustaining the culture aspects of you know, so looking at different types of people you have any organization from personalities, you know, and what not and how everybody fits into the overall structure and everything so that we all get the benefit of these initiatives. So talk about going through each one of these here on the five steps, you know going through reflecting on your purpose measure your opportunities to making your values to your Solutions, then your road maps to exist and sustaining top performance. So I like to disclose that was a quick story here that had about how I use each one of these techniques what I did for future project that my career in back early. I had taken on position as planning dinner for watch facility and shortly after taking the role. I implemented a kpi program found out that we were paying a tremendous amount of money for using natural gas as our primary source of senioration. So basically and, you know put together approval plan and with our team we propose we're going to install the first electric team. Atcogen unit in the state that we're working in. Okay, and so far these steps to go identified reflecting my purpose, you know, identified opportunities connected our values with the solutions clearly articulated how we're going to do it how we're gonna sustainable improvements and basically working so I just said and proceed with the project, right? We in addition. That's right. We also work with our energy provider that we had and after 12 weeks of completing the project and have online. We completely back the cost and drop their natural gas by almost 91% payback blue. It was a great project, you know, in addition that we also received a working state of their manufacturing Advanced Advantage program and also receive the ground their stand the same equipment to other facilities within the state. So just an example of how these actually these steps actually work when you use them. Again, I can't again if size, you know, just going through each one of these steps and just clearly methodically working out and building these steps out to where you can clearly articulate your value. You know, you're you're gonna do it and how you're gonna sustainable forms. That's everything I have today. We'll see. I appreciate everybody taking time to listen to my presentation. If you have any questions or anything about this you like to speak more about this. Please give me quality time. Jim thanks very much.