JUNE 2017 • FOGHORN 15 FOGHORNFOCUS: OPERATIONS • It reduces the damage that systems and equipment experience. • Greater asset reliability will give customers greater confidence in your business. • Less operational time loss as a result of unplanned maintenance. • Lower maintenance costs and improved asset availability will afford you the opportunity to make future improvements! The Business Case for Implementation of Condition Monitoring and Condition Based Maintenance • If the replacement cost of a vessel is $10M and your annual maintenance costs per vessel-year are $280K, then the potential improvement through the implementation of conditioned based maintenance is $40-90K per vessel-year. • If the cost of implementation is $100K per vessel, then the payback period is less than 2.5 years (worst case). This ignores increase revenues as a result of greater asset availability (less down time). I hope this article provides you with a better understanding of how improved reliability can reduce your maintenance costs and increase revenue through better availability. If you have any questions, you can contact me at moard@ dandp.com. n WORK BOATS. THAT WORK. MAVRIKMARINE.COM | 360.296.4051 Unsurpassed quality and attention to detail. Specializing in aluminum and steel new construction, refit & repair. About the Author Martin “Marty” Oard is the Chief of Integrated Logistics and Reliability at BMT Designers. A graduate of the U.S. Coast Guard Academy, he served in the Coast Guard from 1984-2006. Coast Guard assignments included naval engineer, and serving on three ships, the Maintenance and Logistics Command Atlantic (specifications and depot level repairs) and Training Center Yorktown as the Engineering and Weapons School Chief, as well as Executive Officer of the Coast Guard Yard. Oard has authored three articles published in Coast Guard Engineering, Electronics and Logistics Quarterly on the theory of constraints, critical chain project management and knowledge management. He holds several degrees, including a Bachelor of Science Degree in Naval Architecture and Marine Engineering (USCG Academy1984), Masters Degrees in Naval Architecture & Marine Engineering and Mechanical Engineering from the University of Michigan-Ann Arbor (1991), and an M.B.A. from the University of Maryland-University College (2006).