Full service agreement lowers maintenance costs
SWEDISH steel mill
Outokumpu Stainless has reduced its maintenance cost while increasing production by 80%, after it implemented the ABB full service agreement.
According to
ABB, the agreement started in 2001, and since then the Degerfors steel mill in Sweden has managed to reduce its maintenance staff by 30%, and seen a 58% per ton drop in maintenance costs, constituting a total 25% decline in maintenance costs.
In the same timeframe, the mill raised production volume by 80% to 120,000t per year.
The full service agreement resulted in improvements in equipment availability and performance and a greater focus on preventive maintenance. This resulted in world-class mean times between failure and mean times to repair, extended equipment lifecycles, and the elimination of unplanned stoppages.
The agreement sets performance objectives that reward or penalise ABB depending on the results. The company therefore shares the risks and rewards of plant maintenance, providing an incentive to continually improve performance.
8-Jul-2008
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