International Study of

Plant Reliability and

Maintenance Effectiveness
2013 RAM Study Subscription Package

Solomon developed the RAM Study in partnership
with industry leaders to identify and quantify areas
for improved reliability and maintenance
performance. The study provides the most
comprehensive set of reliability and maintenance
benchmarks in the industry.
For more than 30 years, HSB Solomon
Associates LLC (Solomon) has relied on its
Comparative Performance Analysis (CPA)
methodology to benchmark capital intensive
energy industry assets. This distinctive
approach to benchmarking identifies how
facilities operate relative to their competition
across a range of key performance indicators
(KPIs). Such an analysis allows participants to
understand their performance compared to
their competition.
Table of Contents

Study Overview ................................... 2
Scope & Improvement............................ 3
View of Performance ............................. 4
Deliverables ....................................... 7
Milestones/Project Schedule .................... 8
Summary ........................................... 9


2013 HSB Solomon Associates LLC

Page 2 of 9





Since 1996, leading companies in the global process
industry have relied on RAM Study results to
identify improvement opportunities
Solomons RAM Study serves the process industry (e.g., chemicals, petrochemicals,
refining, etc.), comparing reliability and maintenance performance within specified
peer groups. By normalizing reliability and maintenance performance using Plant
Replacement Value (PRV), the study provides valid comparisons to others in the
same or similar industry. Using a validated PRV provides the ability to predict a
target variable based on a series of drivers; thus, the relative efficiency of a
particular unit can be determined through a comparison to industry performance.
Why benchmark reliability performance?
Mechanical availability <97%
Unreliability (characterized by equipment failures) is the largest downtime
contributor
Equipment failures are driving maintenance behaviors
Total plant maintenance turnaround (shutdown) occurs more frequently than
once every 5 years
Increased uptime would provide much needed capacity
Breakdown maintenance is your normal mode of operation
Another Solomon study (e.g., Fuels or Olefin Study) points to reliability as an
improvement opportunity
Why benchmark maintenance performance?
Maintenance costs are >1.4% of PRV and are your highest fixed cost
Maintenance costs are not effectively controlled
Maintenance activities are predominantly corrective in nature (something
broke, now you must repair it)
Corrective maintenance costs exceed preventive/predictive maintenance costs
Reactive maintenance is your normal mode of operation
Another Solomon study (e.g., Fuels or Olefin Study) points to maintenance as
an improvement opportunity
The Result
RAM Study results provide your team with a wealth of insights regarding your
plants reliability and maintenance performance and points to likely causal factors.
Total industry and peer group averages provide realistic targets for performance
improvement and monitoring.
We provide insights into
overall reliability and
maintenance performance
while identifying actionable
opportunities needed to
formulate a measurable
improvement plan.

Leveraging Your Study Data
Across the globe, companies participating in
Solomons RAM Study leverage their data to:
Determine their competitive position
Quantify performance shortfalls relative to
peers
Establish performance targets and measure
progress
Confirm performance capabilities across the
site and company
Study Features
The RAM Study is based on extensive
information collected across all performance
facets of reliability and maintenance. The study
offers:
Standard metrics for analyzing performance
Simplified web-based input and interface
Rigorous interactive web-based data
validation
Gap analysis comparing performance to top
performers
Performance comparisons at the production
unit and site level
Comparisons across geographic regions
An on-site presentation and detailed review
of results
Absolute client confidentiality
Confidentiality and Limitations
Solomon sends identical data requests to each
subscriber and maintains each participants
privacy and data confidentiality.
Participants are required to protect Solomon
intellectual property. To read the full text of
the Confidentiality and Limitations,
go to www.SolomonOnline.com/confidentiality.

Overview


Page 3 of 9
The Solomon CPA
methodology is
essential to achieve
operational and
financial certainty.

Participation Scope
The 2013 RAM Study is open to all process industry manufacturers (e.g., chemical,
petrochemical, and refining operations), comparing reliability and maintenance
performance within specified peer groups. Companies with multiple sites submit separate
data for each site and process unit at each site.
RAM Study Redesign
Solomon worked with the RAM Study Advisory Council (a cross section of corporate
reliability and maintenance professionals from numerous multi-national companies) to redesign the study with the latest
technologies and methodologies in reliability and maintenance. As a result, the new and improved RAM Study has these features:
20% reduction in data requirements
Simplified web-based data input process allowing multiple simultaneous users
Auto-validation of data prior to submission
A detailed Opportunities Report for each process unit that reveals reliability and maintenance performance improvement
opportunities
Comprehensive study files at the process unit- and site-level showing all performance data and practices that allow for a full
analysis of study data
An on-site presentation of results for executives and senior managers
An on-site, detailed review and workshop of the Opportunities Report to enable participants to identify and prioritize their
unique improvements opportunities
The RAM Study Process - Step by Step
Our goal is to simplify the data collection process while providing your team with an effective tool for improving plant performance.
Step 1 We provide training seminars both in-person and web-based for personnel responsible for data collection and entry.
Step 2 Your team collects the required data according to the definitions provided and enters it into your confidential web-based
data input site with built-in data validation checks.
Step 3 We thoroughly validate the data and confirm the accuracy of your input before calculating your results.
Step 4 We provide your results and offer in-person presentations and workshops designed to ensure you maximize
the benefits of participation.
Data is captured in the key categories that most affect reliability and maintenance cost performance of industrial facilities.
The following section describes what insight each category reveals as well as representative data output.
Scope & Improvements
Complete Redesign in 2011
The average amount of margin
gain through improved reliability
combined with the maintenance
cost reduction opportunities
identified through Solomons
proprietary gap analysis is millions
of dollars for the best performers.

Page 4 of 9

Mechanical Availability
Mechanical reliability includes reliability and maintenance-related downtimes and
rate reductions for mechanical reasons. The metric used to measure and compare
is Mechanical Availability (% of yr). Figure 1 shows the range of mechanical
availability for the units in the RAM Study, along with your plants positions.
The lost production due to mechanical reasons is collected in the following areas:
Annualized turnaround (T/A) downtime
Short overhaul downtime
Downtime due to corrective maintenance
Rate reductions due to mechanical breakdown
Figure 2 depicts the different types of downtime by performance quartile along
with your companys data. For each of these areas, the equipment category
contributing to the downtime is identified (rotating equipment, fixed equipment,
and instrument and electrical equipment). The study reveals how much downtime
is attributed to each equipment category.
The RAM Study collects additional T/A information:
Annualized T/A downtime is divided into three categories: shutdown,
mechanical repair, startup
Principle reason for T/As
T/A scope, including the percent of process equipment worked on during the
T/A (heat exchangers, control valves, process safety values, furnaces/boilers,
process vessels, towers, pumps, compressors); refer to Figure 3
T/A critical path
RAM12-06
P
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Heat
Exchangers
Opened
Control
Valves
Overhauled
Pressure
Relief/
Safety
Valves
Recalibrated
Fired Furnaces/
Boilers Repaired/
Overhauled
Process
Vessels
Opened
Distillation
Towers
Opened
Process
Pumps
Overhauled
Process
Compressors
Overhauled

Figure 3. T/A Scope Percent of Equipment Worked on During T/A
RAM12-04
25 0 50 75 100
Total Participation, %
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Figure 1. Mechanical Availability Distribution

RAM12-05
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Corrective Maintenance
Annualized T/A Short Overhauls
Rate Reductions

Figure 2. Mechanical Availability
by Type of Downtime
A Detailed View of Performance
Examining What the Study Covers
Use your CPA data to support the
financial and operational
optimization of your capital-
intensive assets.


Page 5 of 9
Total Maintenance Expenditures
Solomon analyzes maintenance costsincluding maintenance capitalby function
and activity, providing multiple perspectives of performance measurement. All
maintenance expenditures are collected by equipment category (rotating
equipment, fixed equipment, and instrument and electrical equipment). Indirect
support costs are included in overall maintenance costs (refer to Figure 4).
Personnel Costs and Work Hours
Understanding organizational effectiveness and personnel productivity is critical to
overall maintenance performance. The results in this category provide personnel
cost metrics and approximate work hours required to maintain your plant as well as
craft ratios, including both company and contractor personnel. Figure 5 plots work
hours per US $M PRV, showing the personnel hours required by craft for each of the
performance quartiles.

RAM12-12
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S

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M

P
R
V
Q1 Q2 Q3
Rotating Equipment Fixed Equipment I&E Equipment
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Routine Turnaround

Figure 5. Personnel Work Hours

RAM12-07
M
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,

%

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f

P
R
V
2 3
Quartiles of MCI Site
1 4 A B C
Labor Materials Indirects

Figure 4. Total Maintenance Cost
A Detailed View of Performance
Examining What the Study Covers
Learn how your performance
compares to your peers and top
performers within the industry.


Page 6 of 9

Reliability and Maintenance (RAM) Effectiveness
Helping you determine the best possible financial impact of your reliability and
maintenance effectiveness, this analysis highlights the benefits of properly
managing a facilitys reliability and maintenance cost as displayed in your Reliability
and Maintenance Effectiveness Index (RAM EI). RAM EI combines the value of lost
production with the cost of maintaining a plant (refer to Figure 6).
Gap Analysis
Solomons gap analysis methodology enables participants to identify strengths and
opportunities in 20 primary reliability and maintenance cost areas. Each process
unit is analyzed relative to a better-performing group of units producing the same
or similar products. This analysis is provided at the unit level but also can be
analyzed at the site and company level (refer to Figure 7).
Opportunities at the site level are summarized by unit (refer to Figure 8)
as well as by performance category. The opportunity report provides a basis
for a performance improvement plan. The example in Figure 7 shows a total net
gap of US $7M for the entire company; however, the graph reveals that the
true improvement opportunity is actually US $71M.
Each site is then given a summary of the opportunities at the process-unit level,
similar to that illustrated in Figure 8. Of the US $71M of company opportunities,
this site has US $40M.

RAM12-09
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Downtime Due
to RAMReasons Hours Contribution
Wage
Contribution Material Costs Indirects
Routine Annualized T/A Routine Annualized T/A
Disadvantage
Advantage
Total Net Gap = US $7M
Total Opportunities = US $71M

RAM12-11
2
Plant
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16
14
12
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Figure 7. Company RAM Gaps Figure 8. RAM Opportunities by Unit
RAM12-08
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2 3
Quartiles of RAM EI Site
1 4 A B C
Value of Lost Production Total Maintenance Cost

Figure 6. RAM Effectiveness Index
A Detailed View of Performance
Examining What the Study Covers
Our studies show that a 1%
gain in mechanical availability
can lower maintenance costs
by 10%.

Page 7 of 9

Reporting Based on Peer Groups
Peer groups are based on the following
classifications:
Industry (chemicals, refining, etc.)
Product (process family)
Performance groups (best performers by
indicatorreliability, maintenance costs, or
overall reliability and maintenance
effectiveness)
Geographic regions (Europe, Asia, North
America, South America)regional
breakdown is dependent on participation
levels from each region

Individual Client Reports
Each participant receives the following unique, electronic Microsoft

Excel

files to facilitate further analytical study:
Opportunities Report Customized for each participating site, these files
provide gap analysis tables and charts for the site and each unit at the
facility. These are the primary management reports and analysis tools for
use in company planning, and are invaluable for identifying improvement
opportunities.
Company Summary This strategic-level summary of all the participating
sites and units belonging to a single enterprise is intended to provide a
side-by-side comparison of multiple sites within the enterprise.
Site Study Results This report is a compilation of the results data from
the individual sites summarized in a single set of data. It is strategic in
that it displays only site-level data. Unit-level data is presented on unit-
level spreadsheets.
Unit Study Results This spreadsheet contains the results for each
individual unit within a single site defined by the client. It is found in the
individual folder for each of the enterprises sites contained in the study.
Study Validated Input This spreadsheet restates the final validated data
provided by the client through the website.

Review of Study Results in Client Offices
A senior consultant presents summary results for executives and senior
managers, explaining the methodology and focusing on performance issues
relevant to the individual client and participating business units. Following this
presentation, a detailed review and workshop of the site and unit study files as
well as the opportunity report will enable participants to identify and
prioritize their improvement opportunities.
Following completion of the study report, our consultants begin delivering
presentations to each participant. Details and fees are listed in the
participation form of the Subscription Agreement.
Deliverables to Maximize
Improvement Opportunities
Companies around the globe
establish their performance
targets and measure progress
using Solomons performance
indicators.


Page 8 of 9

2013
Invitations Distributed Electronically :: July/August

Subscription Agreements Due :: September 30

Private Data Coordinator Seminars :: Starting in December and continuing into early February

2014
Data Coordinator Webinars :: January

Data Submittal Due :: April 30

Data Validation and Finalization :: May 31

Analysis and Results Generation :: June/July

Study Results Issued in Electronic Format :: August

Results Presentations and Workshops :: August October

Additional Performance Improvement Assistance
Performance Improvement Workshop
Recommended for study participants who want to expedite their performance improvement program, this workshop is held
at the client location to analyze the results and methodology in detail. Offered for an additional fee, this workshop teaches participants
how to use RAM Study results as a tool for planning and budgeting, and how to translate study results into tangible benefits.
For more about pricing and scheduling of the Performance Improvement Workshop, contact Mr. Gary Fuller by phone at
+1.972.739.1816 or via email at Gary.Fuller@SolomonOnline.com.
Performance Improvement Consulting
Solomons consulting team can evaluate your reliability and maintenance practices to identify opportunities for improvement.
Maximize your study results through analyzing your data, formulating a plan, implementing the plan, and monitoring progress.
Solomons Net Cash Margin Measurement, Management, and Maximization (NCM) methodology will help you develop follow-up
steps to achieve performance improvement.
Our team can:
Establish performance targets
Assess future performance impact of planned capital improvements/modifications
Create and/or enhance a performance improvement program

For more information about how our Performance Improvement Consulting Services can help your company, contact
Mr. Charles Reith by phone at +1.972.739.1759 or via email at Charles.Reith@SolomonOnline.com.
Our CPA project schedule
provides sufficient time for
training, data collection,
validation, and on-time delivery
of study results to maximize your
ability to use your analysis in
your short- and long-term
planning.

Milestones/Project Schedule

Page 9 of 9


Next Step
Return your completed Subscription Agreement electronically, by express delivery, or by fax no later than September 30, 2013. Also,
note the dates of the training seminars and webinars.

Private Data Coordinator Seminar
Private Data Coordinator Seminars are included in the base fee for all new sites at your facility. Additional seminars are available for
a fee; please submit your request as soon as possible. The sooner you submit your subscription agreement, the more likely you will
receive your requested seminar date.




We look forward to providing valuable information on which to base your performance improvement
efforts. As always, we welcome any questions or feedback and look forward to being a part of your
companys performance improvement team.




Questions?
Contact the 2013 RAM Study Project Manager, Mr. Gary Fuller, at our Dallas, TX USA office by phone (+1.972.739.1816) or via email
at Gary.Fuller@SolomonOnline.com. Please contact Mr. Fuller if you have questions or need clarification on any aspect of this
proposal.
Summary
Our goal is to provide the
highest-quality benchmarking
data and excellent consulting
services that clients have come
to expect from Solomon over
the last 30 years.