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Ralph 'Pete' Peters
Founder & President
"Maintenance Excellence Begins with

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Ralph W. 'Pete' Peters
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The TMEII family is a proud sponsor of Adventurers for Special Needs (AFSN). In fact, Ralph 'Pete' Peters TMEII Founder/President is Co-founder of AFSN with his son, Brian Peters. This organization is near and dear to all of the TMEII family. Learn More

A Reliability & Maintenance Excellence and MRO Glossary


Introduction:The following terms and definitions are from the area of Maintenance Management, Maintenance Storeroom Operations, Inventory Management, and MRO Materials Management areas. In addition we have included Oil and Gas terms. Included in this version are definitions of selected terms used within the entire PRIDE-in-Maintenance.com site.

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Economic Life - The total length of time an asset is expected to remain actively in service before it is expected it would be cheaper to replace the equipment rather than continuing to maintain it. In practice, equipment is more often replaced for other reasons, including: because it no longer meets operational requirements for efficiency, product quality, comfort etc., or because newer equipment can provide the same quality and quantity of output more efficiently.

Economic Order Quantity (EOQ) - Amount of an item that should be ordered at one time to get the lowest possible combination of Inventory Carrying Costs and ordering costs.

Economic Repair - A repair that will restore the item to a sound condition at a cost less than the value of its Estimated Remaining Useful Life.

Economically Producible - A resource that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation.

Effective CMMS System - In order for the CMMS to track the maintenance cost, including labour and parts history equipment records will need to be created in such a fashion that will identify all required information. The design will also need to be configured to allow for benchmarking, measuring uptime, conducting Root Cause Failure Analysis (RCFA), and the potential for creating hierarchy relationships.

Emergency Maintenance (EM) - A condition requiring immediate corrective action for safety, Environmental, or economic Risk, caused by equipment Breakdown.

Emergency Maintenance Task - A Maintenance task carried out in order to avert an immediate safety or Environmental hazard, or to correct a Failure with significant economic impact.

Energy Management Audit - There are a few different ways that we can help you save energy. One of our main methods of saving energy is by studying your utility bills to understand your energy usage patterns. From these patterns, we can make decisions on not only where to reduce your energy usage, but also when.

Engineering Change - Any design change that will require revision to Specifications, drawings, documents, or Configurations.

Engineering Change Notice (ECN) - A control document from engineering authorizing Changes or Modifications to a previous design or Configurations.

Engineering Work Order (EWO) - The prime document used to initiate an engineering investigation, engineering design activity or engineering Modifications to an item of equipment.

Enhanced Oil Recovery (EOR) - One or more of a variety of processes that seek to improve recovery of hydrocarbon from a reservoir after the primary production phase.

Environmental Assessment - A study that can be required to assess the potential direct, indirect and cumulative environmental impacts of a project.

Environmental Consequences - A Failure has environmental consequences if it could cause a breach of any known environmental standard or regulation.

Equipment Configuration - List of Assets usually arranged to simulate the process, functional, or sequential flow.

Equipment/Facility Resources - All of the equipment and or facilities available to assist with the performance of the purpose of the company, factory or facility.

Equipment Maintenance Strategies - The choice of Routine Maintenance Tasks and the timing of those tasks, designed to ensure that an item of equipment continues to fulfill its intended Functions.

Equipment Repair History - A chronological list of defaults, repairs, and costs on key Assets so chronic problems can be identified and corrected and economic decisions made.

Equipment Use - Accumulated hours, cycles, distance, throughput, etc., or performance.

Estimated Plant Replacement Value - The estimated cost of capital required to replace all the existing Assets with new Assets capable of producing the same quantity and quality of output.

Estimated Ultimate Recovery (EUR) - The sum of reserves remaining as of a given date and cumulative production as of that date.

Estimating Index - The ratio of Estimated Labor Hours required completing the work specified on Work Orders to the actual labor hours required to complete the work specified on those work orders, commonly expressed as a percentage. This is also a measure of Craft Performance (CP), one element of Craft Labor Productivity, particularly when there are well-defined Estimating standards.

Examination - A comprehensive Inspection with measurement and physical testing to determine the condition of an item.

Expediting - Special efforts to accelerate a process. An expediter coordinates and assures adequate supplies of parts, materials and equipment.

Expense - Those items directly charged as a cost of doing business. They generally have a short, nondurable Life. Most non-repairable repair parts are expensed when installed on equipment.

Expensed Inventory - Parts written off as a "Cost of Sales." Material transferred from Ledger Inventory to Expensed Inventory is to be used within 12 months.

Expert System - Decision support software with some ability to make or evaluate decisions based on rules or experience parameters incorporated in the database; a software based system, which makes or evaluates decisions based on rules established within the software. Typically used for fault diagnosis.

Exploratory Well - A well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir.

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Facilities - Buildings (such as in manufacturing plants or other physical locations) that are built, installed, or established to serve a particular purpose.

Facility Condition Assessment - A physical audit of the facility, the fixed support equipment inside and outside of a facility with the resulting report giving an estimated or expected life for the facility and the equipment.

Fail-Safe - An item is Fail-Safe if or when the item itself incurs a Failure, that failure becomes apparent to the operating workforce in the normal course of events.

Failure - Termination of the ability of an item to perform its required Function to a standard; an item of equipment has suffered a failure when it is no longer capable of fulfilling one or more of its intended functions. Note that an item does not need to be completely unable to function to have suffered a failure. For example, a pump that is still operating, but is not capable of pumping the required flow rate, has failed. In Reliability Centered Maintenance (RCM) terminology, a failure is often called a Functional Failure.

Failure Analysis - The logical, systematic Examination of an Item or its design, to identify and analyze the Probability, causes, and consequences of real or potential malfunction. A study of Failures to analyze the root causes, to develop improvements, to eliminate or reduce the occurrence of Failures. (See Failure Modes, Effects and Criticality Analysis (FMECA).

Failure Cause - See Failure Mode.

Failure Coding - Identifying and indexing the causes of equipment Failure on which corrective action can be based, for example, lack of lubrication, operator abuse, material fatigue, etc.; a code typically entered against a Work Order in a Computerized Maintenance Management System (CMMS) which indicates the cause of Failure (e.g. lack of lubrication, metal fatigue etc.).

Failure Consequences - A term used in Reliability Centered Maintenance (RCM). The consequences of all failures can be classified as being either: Hidden, Safety, Environmental, Operational, or Non-Operational.

Failure Effect - A description of the events that occur after a failure has occurred because of a specific Failure Mode. Used in Reliability Centered Maintenance (RCM), Failure Modes and Effects Analysis (FMEA) and Failure Modes, Effects and Criticality Analysis (FMECA).

Failure Finding Interval - The Frequency with which a Failure Finding Task is performed. Is determined by the frequency of Failure of the protective device, and the desired Availability required of that protective device.

Failure Finding Task - Used in Reliability Centered Maintenance (RCM) terminology. A Routine Maintenance Task, normally an Inspection or a testing task, designed to determine, for Hidden Failure, whether an Item or component has failed. A Failure Finding Task should not be confused with an On-Condition Task, which is intended to determine whether an item is about to fail. Failure Finding Tasks are sometimes referred to as Functional Tests.

Failure Mode - Any event that causes a Failure.

Failure Modes, Effects and Criticality Analysis (FMECA) - A structured method of assessing the causes of Failures and their effect on production, safety, cost, quality etc.

Failure Modes and Effects Analysis (FMEA) - A structured method of determining equipment Functions, Functional Failures, assessing the causes of Failures and their Failure Effects. The first part of a Reliability Centered Maintenance (RCM) analysis is a Failure Modes and Effects Analysis.

Failure Pattern - The relationship between the Conditional Probability of Failure of an item, and its age. Failure Patterns are generally applied to Failure Modes. Research in the airline industry established that there are six distinct failure patterns. The type of failure patterns that applies to any given Failure Mode is of vital importance in determining the most appropriate equipment maintenance strategy. This fact is one of the key principles underlying Reliability Centered Maintenance (RCM).

Failure Rate - The number of failures per unit measure of life (cycles, time, miles, events, and the like) as applicable for the item.

Farm-In - The acquisition of part or all of an oil, natural gas or mineral interest from a third party.

Farm-Out - The assignment of part or all of an oil, natural gas or mineral interest to a third party.

Fault Tree Analysis (FTA) - A review of Failures, faults, Defects, and shortcomings based on a hierarchy or relationship to find the root cause.

Field -
An area consisting of a single hydrocarbon reservoir or multiple geologically related reservoirs all grouped on or related to the same individual geological structure or stratigraphic condition.

Fill Rate - Service level of a specific stock point. An 85% Fill Rate means that if 100 parts are requested, then 85 of them are available and issued.

First In-First Out (FIFO) - Use the oldest item in inventory next. FIFO accounting values each item used at the cost of the oldest item in Inventory. Contrasts with Last In-First Out (LIFO)

Flaring - The burning of natural gas for safety reasons or when there is no way to transport the gas to market or use the gas for other beneficial purposes (such as EOR or reservoir pressure maintenance). The practice of flaring is being steadily reduced as pipelines are completed and in response to environmental concerns.

Floating Production, Storage and Offloading (FPSO) - Provides alternative to pipeline to store oil production and load vessels for movement to markets.

Forecast - To calculate or predict some future event or condition, usually because of rational study and analysis of pertinent data. The projection of the most probable: as in Forecasting Failures and Maintenance activities.

Formation - A rock layer which has distinct characteristics (e.g. rock type, geologic age).

Forward Workload - All known Backlog Work and work which is due or predicted to become backlog work within a pre-specified future time period.

Fossil Fuel - A fuel source (such as oil, condensate, natural gas, natural gas liquids or coal) formed in the earth from plant or animal remains.

Frequency - Count of occurrences during each time period or event. A typical Frequency Chart for inventory plots - demand versus days.

Front-End Engineering and Design (FEED) - Part of a project's life cycle.

Function - A separate and distinct action required to achieve a given objective, to be accomplished by the use of Hardware, computer programs, personnel, Facilities, procedural data, or a combination thereof; or an operation a system must perform to fulfill its mission or reach its objective; the definition of what we want an item of equipment to do, and the level of performance which the users of the equipment require when it does it. An item of equipment can have many functions, commonly split into primary and secondary functions.

Functional Failure - Used in Reliability Centered Maintenance (RCM) terminology. The inability of an item of equipment to fulfill one or more of its Functions. Interchangeably used with Failure.

Functional Levels - Rankings of the physical hierarchy of a product. Typical levels of significance from the smallest to the largest are part, Subassembly, Assembly, Subsystem, and System.

Functional Maintenance Structure - A method for organizing the maintenance operation where the first-line Maintenance Leader is responsible for conduction a specific kind of maintenance, for example, electrical maintenance, pump maintenance, HVAC maintenance, etc.

Functional Standard - The combination of hardware, computer programs, personnel, facilities, procedural data, or a combination thereof; that an operation or system is designed to perform. Includes the definition of what we want an item of equipment or system to do, and the level of performance which the users of the equipment require when it does it.

Fugitive Emissions - Emissions of gases or vapors from pressurized equipment, including pipelines, due to leakage, unintended or irregular releases of gases.

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Gambling With Maintenance - See Run to Failure

Gantt Chart - A bar chart format of scheduled activities showing the duration and sequencing of activities.

Gas Cost Recovery (GCR) - Most gas utility companies bill their customers based on the actual cost of gas as a separate charge from the Distribution Charge and other charges on the bill. The GCR factor is the cost for the gas itself, before delivery and other charges are added on.

Gathering System - Pipelines, compressors and additional equipment used to move gas from the wellhead to a processing facility.

General Support Equipment (GSE) - Equipment that has maintenance application to more than a single model or type of equipment.

Global-Warming Potential (GWP) - The relative measure of how much heat a greenhouse gas traps in the atmosphere. It compares the amount of heat trapped by a certain mass of the gas in question to the amount of heat trapped by a similar mass of carbon dioxide. GWP is calculated over a specific time interval, commonly 100 years. GWP is expressed as a multiple of that for carbon dioxide (whose GWP is standardized to 1).

Go-line - Used in relation to mobile equipment. Equipment, which is available, but not being utilized is typically parked on the Go-line. This term is used interchangeably with Ready Line.

Greenhouse Gas - Atmospheric gases that are transparent to solar (short-wave) radiation but opaque to long-wave (infrared) radiation, thus preventing long-wave radiant energy from leaving earth's atmosphere. The net effect of these gases is a trapping of absorbed radiation and a tendency to warm the planet's surface. The greenhouse gases most relevant to the oil and gas industry are carbon dioxide, methane and nitrous oxide.

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Hardware - A physical object or physical objects, as distinguished from capability or Functions. A generic term dealing with physical items of equipment-tools instruments, component, parts-as opposed to funds, personnel, services, programs, and plans, which are termed "software."

Heavy Oil - Crude oil with an API gravity less than 20°. Heavy oil generally does not flow easily due to its elevated viscosity.

Hidden Failure - A Failure that, on its own, does not become evident to the operating crew under normal circumstances. Typically, protective devices which are not Fail-safe (examples could include standby plant and equipment, emergency systems etc.).

Hidden Assets/Resources - People resources that can be unleashed for Continuous Improvement by having a synergistic team process in place; allowing everyone's ideas to be considered.

Hold for Disposition Stock - Defective material held at a stock location pending removal for repair or for scrap.

Horizontal Drilling - A drilling technique whereby a well is progressively turned from vertical to horizontal so as to allow for greater exposure to an oil or natural gas reservoir. Horizontal laterals can be more than a mile long. In general, longer exposure lengths allow for more oil and natural gas to be recovered from a well and often can reduce the number of wells required to develop a field, thereby minimizing surface disturbance. Horizontal drilling technology has been extensively used since the 1980s and is appropriate for many, but not all, developments.

Hot Work - Work too hot to handle safely.

Hydraulic Fracturing - Hydraulic fracturing (also referred to as frac'ing or fracking) is an essential completion technique in use since the 1940s that facilitates production of oil and natural gas trapped in low-permeability reservoir rocks. The process involves pumping fluid at high pressure into the target formation, thereby creating small fractures in the rock that enable hydrocarbons to flow to the wellbore.

Hydraulic Fracturing Fluids - Mixture of water and proppant along with minor amounts of chemical additives used to hydraulically fracture low permeability formations. Water and sand typically comprise up to 99.5% of the mixture.

Hydrocarbons - An organic compound containing only carbon and hydrogen and often occurring in nature as petroleum, natural gas, coal and bitumens or in refined products such as gasoline and jet fuel.

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Identification - Means by which items are named or numbered to indicate they have a given set of characteristics. Identification may be in terms of name, part number, drawing number, code, stock number, or catalog number. Items may also be identified as part of an assembly, a piece of equipment, or a system.

Improved Oil Recovery (IOR) - Term used to describe methods employed to improve the flow of hydrocarbons from the reservoir to the wellbore or to recover more oil or natural gas. Enhanced oil recovery (EOR) would be one form of IOR.

Indirect Costs - Expenses not directly associated with specific products, operations, or services; usually considered overhead.

Infant Mortality - The relatively high Conditional Probability of Failure during the period immediately after an item returns to service.

Infill Wells - Wells drilled into the same reservoir as known producing wells so that oil or natural gas does not have to travel as far through the formation, thereby helping to improve or accelerate recovery.

Inherent Reliability - A measure of the reliability of an Item, in its present Equipment Maintenance Strategies.

In-Situ Recovery - Techniques used to extract hydrocarbons from deposits of extra-heavy crude oil, bitumen or oil shale without removing the soil and other overburden materials.

Inspection - A review to determine maintenance needs and priority on equipment; any task undertaken to determine the condition of equipment, and/or to determine the tools, labor, materials, and equipment required to repair the item.

Insurance Items - Parts and materials that are considered as Critical Spares but not used often enough to meet detailed stock accounting criteria. Insurance items are stocked because of their essentially or the Lead-time involved in procuring replacements. May be of high dollar value to classify them as Capital Spares.

Interchangeable - Parts with different Configurations and numbers that may be substituted for another part, usually without any Modification or different performance, since they have the same form, fit and Functions.

Interface - A common boundary between two or more items, characteristics, systems, Functions, activities, departments, or objectives. That portion impinges upon or directly affects something else.

Interval-Based - Periodic Preventive Maintenance based on calendar time.

Inventory - Physical count of all items on hand by number, weight, length, or other measurement; also, any items held in anticipation of future use.

Inventory Control - That phase or Function of logistics which includes management, cataloging, requirements, determination, procurement, Inspection, storage, distribution, overhaul, and Disposal of material. Managing the acquisition, receipt, storing and issuance of materials and spare parts; managing the investment efficiently of the stores inventory.

Inventory Turnover - Ratio of the value of materials and parts Issues annually to the value of materials and parts on-hand, expressed as percentage.

Inventory Value - The value of items in inventory which can be calculated several ways; average cost method, Last In-First Out (LIFO) and First In-First Out (FIFO).

Issues - Stock consumed through stores.

Item - Generic term used to identify a specific entity. Items may be parts, component, assemblies, subassemblies, accessories, groups, parents, components, equipment, or attachments.

Item of Supply - An article or material that is recurrently purchased, stocked, distributed, used and is identified by one distinctive set of numbers or letters throughout the organization concerned. It consists of any number of pieces or objects that can be treated as a unit.

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Jack-up Rig - An offshore rig with retractable steel legs that are placed on the ocean floor to raise the rig above the water line.

Joint operating agreement (JOA) - An agreement governing the rights and obligations of co-owners in a field or undeveloped acreage, which defines, amongst other things, how costs and revenues are to be shared among the parties and who is the operator.

Just-In-Time (JIT) - A buzzword term for proactive planning of many processes such as JIT Inventory service, JIT Maintenance services, etc.