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Maintenance & Repair (M&R) – a new step of development

National Company «Kazakhstan Temir Zholy», which plays the leading role in implementation of the government objectives for development of production and technical potential of the railways industry of Kazakhstan, makes a significant contribution into the country’s development. Certainly, further development of the steel trunk is impossible without innovation that are being implemented by the Company. «Implementation of the new model for maintenance and repair (M&R) management» is one of the large-scale projects of JSC «NC «KTZ».

The project is aimed at development and implementation of an integrated system for production assets management that would allow to make efficient managerial decisions through the entire lifecycle of assets, from the moment of their production or acquisition up to decommissioning.

Pursuant to the Road Map for implementation of the Business Transformation Programme of JSC «NC «KTZ» introduction of the new model for assets’ maintenance and repair management has been started this year in the branch of JSC «NC «KTZ» – «Directorate of Backbone Railways Network», JSC «KTZ-Freight Transportations» and JSC «Passenger Transportations». The project includes a set of tasks, from «quick wins» that allow to benefit within short period of time up to the tasks that bring institutional changes in the railways industry, - says Batyr Kotyrev, the Chief Engineer of JSC «NC «KTZ».

The team has researched best international practices in the area of asset management as well as proposals of the leading international consulting companies and approaches to the asset management by developer institutions.

To the moment, we have developed and approved the policy for production asset management, roadmaps for optimization of production assets that are not involved in the core business.

Batyr Kotyrev brings into focus the fact that the core target of the project is to improve efficiency of asset management and repairs, their reliability and safety, and to ensure high level of performance. This will allow to balance costs for assets maintenance and risks of failures during assets operations.

«Quick wins»

In terms of influence of the «M&R» project on business of JSC «NC «KTZ», the Chief Engineer pays special attention to «quick wins» that include optimization of the production assets portfolio of the Company and development of approaches to management of services provided by contractor organizations.

In order to perform control over the project’s implementation progress, the steps of decommissioning, sale, and rent of the assets that are not involved in the core business. Thus, assets analysis performed in the branch of JSC «NC «KTZ» – «Directorate of Backbone Railways Network», JSC «KTZ-Freight Transportations», JSC «Passenger Transportations» and JSC «Kaztemirtrans» revealed about 4.8 thousands of such assets.

Batyr Kotyrev points it out that, according to preliminary estimation, the Company will get a benefit of over than KZT 2 bln by the end of 2018 upon completion of this task.

Alongside with that, an analysis of the existing locomotives’ maintenance was performed as well. As explained by the Chief Engineer of the Company, the specialists have researched three core models of locomotives maintenance applied in international practices and they consider what option is better in the context of Kazakhstan.

To ensure fulfillment of this task it is planned to engage a consulting company with international experience and knowledge of best practices. In general, it is expected that savings from the annual costs for locomotives maintenance will achieve up to 5% due to conclusion of a new service agreement in 2017-2018, - Batyr Kotyrev says.

Focus on reliability

Maintenance, which is mainly focused on the equipment’s reliability, mitigates the risks of contingencies occurrence while ensuring the maximum possible operational availability of the equipment and systems with due account to budget limitations and various risks. That is why the Company develops the asset database, assets classification by their functionality, functional failures, their impact and consequences for selection of an individual approach to planning, maintenance and repair. It is planned to develop M&R strategies that reflect the approaches to maintenance, the budgeting principles for all types of repairs and maintenance, cost control, diagnostics, and human resources monitoring and management.

In the long term, we plan to develop functional requirements, methodologies, to perform a classification of the production assets of the Directorate of Backbone Railways Network, and to complete the efforts to optimize the Company’s non-utilized assets.

Batyr Kotyrev notes a positive effect from implementation of the «M&R» project in JSC «NC «KTZ», which will allow the Company to benefit up to KZT 14 billion by 2021.

Implementation of the project will make it possible to create a set of tools to manage the assets throughout their life cycle: from design and planning to decommissioning and disposal. Due to automation of the M&R processes, performance and transparency of the process will improve, starting with human and material resources planning of human and material resources, and finishing with registration of the works performed and writing-off of materials, - Batyr Kotyrev concluded.

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