An analysis of challenges in implementing an equipment reliability improvement strategy : case study Eskom Camden Power Station

In the late 2000s Eskom has been committed in maintaining and improving the levels of plant performance. Eskom main focus was on improving the production critical equipment reliability. Eskom Asset Management Department (AMD) established a strategy of optimising maintenance basis, namely Reliability Basis Optimisation (RBO). The RBO strategy provides for the right amount of maintenance and balanced preventative maintenance tasks to be carried out on the plant systems and equipment, in order to maintain and improve the plant’s inherent reliability. The deployed RBO strategy is recognised worldwide and has been proven to be effective in improving plant performance in the electric utility sector. In the late 2000s Eskom implemented the strategy to all coal-fired power stations, as 85 percent of Eskom generating capacity is generated by coal-fired power stations. In the past years Eskom Asset Management (AM) and Business Productivity Program (BPP) team, initiated a peer review on the progress of the RBO strategy implementation at the coal-fired power stations. The outcome of the review indicated that there are numerous shortcomings and challenges in the implementation of the strategy, at the coal fired power stations. The challenges related to Computerised Maintenance Management (CMM) system usage and Change Management (CM) philosophies. The main objective of this research study was to evaluate the key focus areas posing challenges in implementing the RBO strategy, in relation to CMMS usage and change management philosophies. A case study was conducted in one of Eskom coal-fired power stations namely Camden power station. Camden power station a coal fired power station situated near the town of Ermelo in Mpumalanga. This power station comprises of eight units that each generates 200MW giving 1600MW to the national grid. The coal-fired power station was established in 1967 and mothballed in 1989 due to the unforeseen downturn in the South African economy and consequent negative electricity demand growth. In 2003 the power station was returned to service (RTS) due to the sharp increase in electricity demand. In the quest to obtain more generating capacity, Eskom considered additional megawatts from Camden first because of the low cost of refurbishment. Apart from design and construction to meet stricter environmental legal requirements, boiler and turbine plant had to be refurbished, and in some cases, equipment beyond repair had to be replaced. The upgrading of control and measurement systems required the redesign of plant, and in general, electrical switchgear, instrumentation, and cabling had to be replaced. The power station is currently giving 1481MW to the national grid with 3 x 200MW units, 2 x 195MW units, 1 x 190MW unit, 1 x 196MW unit and 1 x 185MW unit. The eight units were refurbished and synchronised onto the system. The researcher used a descriptive and analytical cross sectional study approach. The analytical cross sectional study measures the outcomes and characteristics in a specific point in time and analysed quantitatively. The collection of empirical data from sources requires a defined target population. The population of this study was 75 employees, consisting of 51 engineering employees, 7 maintenance employees, and 17 works management employees. The research instruments used in this study, for the purpose of collecting primary data, were semi-structured interviews and a survey questionnaire. The semi-structured interviews were conducted on a limited sample of five managers from engineering, maintenance and works management. The survey questionnaire was distributed to the entire target population which included managers. In this study purposive sampling was employed. The list of personnel of interest was obtained from the power station. The survey questionnaire was distributed to the entire target population through an online survey www.surveymonkey.com. The interpreted results and findings of the research are that though the RBO strategy has been proven effective in power utilities, the human dynamics in the implementation of processes play a pivotal role. The successful implementation of a strategy or process is governed by proper change management implementation initiatives. From the study findings it is concluded that most of the study respondents, including the managers, negatively accept the RBO strategy; due to the grey areas in the implementation process. They cited non-involvement in the implementation project planning as an obstacle. Timing for the RBO strategy implementation featured as a niche area. Respondents pointed out that time were inadequate for the implementers; in addition, managers did not fully understand the requirements of the RBO strategy; so, they were unable to support and allocate resources for the RBO strategy implementation. At some instances the RBO strategy is manned by untrained new employees. This research study has brought out many interesting issues that can benefit the organization tremendously on consideration for all new projects to be implemented successfully.Dissertation (MSc)--University of Pretoria, 2017.Graduate School of Technology Management (GSTM)MScUnrestricte