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    KEY PERFORMANCE INDICATORS KEY PERFORMANCE INDICATORS Document Transcript

    • KEY PERFORMANCE INDICATORS Measuring and Managing the Maintenance Function November 2005 Written by: Al Weber Reliability Consultant, Ivara Ron Thomas Director of Reliability Practices, Dofasco IVARA CORPORATION 935 Sheldon Court, Burlington Ontario. Canada. L7L 5K6 Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara.
    • Copyright © 2005 Ivara Corporation. All rights reserved. Information in this document is confidential. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or any means electronic or mechanical, including photocopying for any purpose other than as agreed without permission of Ivara Corporation. Ivara Corporation 935 Sheldon Court Burlington, Ontario Canada. L7L 5K6 Toll free: 1-877-746-3787 Tel: 905-632-8000 Fax: 905-632-5129 www.ivara.com Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara.
    • Maintenance Key Performance customer service, operating costs, safety Indicators and environmental integrity. Introduction To achieve this performance there are three inputs to be managed. The first requirement “It is not possible to manage what you cannot is Design Practices. Design practices control and you cannot control what you cannot provide capable equipment "by design" measure!” (Peter Drucker) (inherent capability), to meet the manufacturing performance requirements. Performance measurement is a fundamental principle of management. The measurement The second requirement is Operating of performance is important because it Practices that make use of the inherent identifies current performance gaps between capability of process equipment. The current and desired performance and documentation of standard operating provides indication of progress towards practices assures the consistent and correct closing the gaps. Carefully selected key operation of equipment to maximize performance indicators identify precisely performance. where to take action to improve performance. The third requirement is Maintenance Practices that maintain the inherent This paper deals with the identification of capability of the equipment. Deterioration key performance indicators for the begins to take place as soon as equipment maintenance function, by first looking at the is commissioned. In addition to normal wear ways that maintenance performance metrics and deterioration, other failures may also relate to manufacturing metrics. Since occur. This happens when equipment is performance measurements for pushed beyond the limitations of its design maintenance must include both results or operational errors occur. Degradation in metrics and metrics for the process that equipment condition results in reduced produces the results, this document equipment capability. Equipment downtime, presents a representation for the business quality problems or the potential for process for maintenance. The document accidents and/or environmental excursions then identifies typical business process and are the visible outcome. All of these can results metrics that can be used as key negatively impact operating cost. performance indicators for the maintenance function. Physical Asset Management The purpose of most equipment in manufacturing is to support the production of product destined to downstream customers. Ultimately the focus is on meeting customer needs. This is illustrated in Figure 1. Customer expectations are normally defined in terms of product quality, on-time delivery and competitive pricing. By reviewing the composite requirements of all current customers and potential customers in those Figure 1: Managing manufacturing performance markets we wish to penetrate, the requirements to meet customer needs performance requirements of our physical assets can be defined. Manufacturing Manufacturing key performance indicators performance requirements can be provide information on the current state of associated with quality, availability, manufacturing. Asset capability, operating Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 3 of 16
    • practices and the maintenance of asset etc. In each of these areas maintenance condition all contribute to the ability to meet may be a factor but it is not the only these performance requirements. contributor. In order to maintain and improve performance each function in the Some typical key performance indicators for organization must focus on the portion of the manufacturing include operating cost; asset indicators that they influence. availability, lost time injuries, number of environmental incidents, OEE and asset Similarly, other manufacturing level utilization. performance indicators are not only a function of maintenance. They are affected Consider asset utilization, as depicted in by causes beyond the control of the Figure 2. Asset utilization is a manufacturing maintenance function. Asset capability, level key performance indicator. It is a operating practices and the maintenance of function of many variables. For example, asset condition all contribute to the ability to asset utilization is impacted by both meet performance requirements. If a maintenance and non-maintenance related manufacturing level indicator is used to downtime. Non-maintenance related measure maintenance performance, downtime may be attributed to lack of improved maintenance may not result in a demand, an interruption in raw material proportional improvement in the supply or production scheduling delays manufacturing metric. For instance, in the beyond the control of the maintenance asset utilization example, cited above, the function. Asset utilization is also a function maintenance contributors may all be positive of operating rate, quality and yield losses, and yet the resulting asset utilization may not improve due to other causes. A key principle of performance management is to measure what you can manage. In order to maintain and improve manufacturing performance each function in the organization must focus on the portion of the indicators that they influence. Maintenance performance contributes to manufacturing performance. The key performance indicators for maintenance are children of the manufacturing key performance indicators. Key performance indicators for maintenance are selected ensuring a direct correlation between the maintenance activity and the Figure 2: Asset Utilization is an example of a key performance indicator measuring it. manufacturing level key performance indicator. When defining a key performance indicator for maintenance a good test of the metric validity is to seek an affirmative response to the question; “If the maintenance function does ‘everything right’, will the suggested metric always reflect a result proportional to the change; or are there other factors, external to maintenance, that could mask the improvement?” This paper focuses on defining key performance indicators for the maintenance function, not the maintenance organization. Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 4 of 16
    • Figure 3: The Asset Reliability Process identifies what's required to manage the maintenance function. The maintenance function can involve other A proactive Asset Reliability Process, departments beyond the maintenance represented by the seven (7) elements in organization. Similarly, the maintenance the model aims to deliver the performance department has added responsibilities required by the enterprise to meet all of its beyond the maintenance function and, as corporate objectives. Each element within such, will have additional key performance the maintenance process is in itself a sub- indicators to report. The key performance process. A brief description of each element indicators for the maintenance organization follows: may include key performance indicators for other areas of accountability such as health Business Focus, represented by the green and safety performance, employee box on the left, focuses the maintenance of performance management, training and physical asset reliability on the business development, etc. goals of the company. The potential contribution of the asset base to these goals The Asset Reliability Process is evaluated. The largest contributors are recognized as critical assets and specific The management of physical asset performance targets identified. performance is integral to business success. What we manage are the business processes required to produce results. One Work Identification, as a process, of these business processes is responsible produces technically based Asset Reliability for the maintenance of physical asset Programs. Program activities identify and reliability. The Asset Reliability Process is control failure modes impacting on the shown in Figure 3. It is an integral part of a equipment's ability to perform the intended much larger business process responsible function at the required performance level. for managing the total enterprise. Activities are evaluated to judge if they are worth doing based on the consequences of failure. Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 5 of 16
    • Planning develops procedures and work executed, this work may not achieve the orders for these work activities. The desired performance results, despite procedures identify resource requirements, significant maintenance costs. Without safety precautions and special work Planning the correct and efficient execution instructions required to execute the work. of the work is left to chance. The Planned Maintenance Process is a cycle. Scheduling evaluates the availability of all Maintenance work is targeted to achieve resources required for work "due" in a required asset performance. Its specified time frame. Often this work effectiveness is reviewed and improvement requires the equipment to be shut down. A opportunities identified. This guarantees review of production schedules is required. continuous improvement in process Resources are attached to a specific work performance impacted by Maintenance. schedule. The use of resources is balanced out. Within the Planned Maintenance Process two internal loops exist. Planning, In the Execution process, trained, Scheduling, Execution and Follow Up make competent personnel carry out the required up the first loop. Once maintenance work. activities are initially identified, an asset The Follow-up process responds to maintenance program, based on current information collected in the execution knowledge and requirements, is initiated. process. Work order completion comments The selected maintenance activities will be outline what was done and what was found. enacted upon at the designed frequency and Actual time and manpower, to complete the maintenance tolerance limits. The process is job, is documented. Job status is updated as self-sustaining. complete or incomplete. Corrective work requests, resulting from the analysis of The second loop consists of the Work inspection data, are created. Requests are Identification and Performance Analysis made for changes to drawings and elements. This is the continuous procedures. improvement loop. Actual asset performance is monitored relative to the The process of Performance Analysis required performance (driven by business evaluates maintenance program needs). Performance gaps are identified. effectiveness. Gaps between actual process The ‘cause’ of these gaps is established and performance and the required performance corrective action recommended. are identified. Historical maintenance data is compared to the current process Performance Metrics for the Maintenance performance. Maintenance activity costs are Function reviewed. Significant performance gaps are addressed by revisiting the Work The Asset Reliability Process represents the Identification function. collection of ‘all’ tasks required to support the maintenance function. The process is a Each element is important to provide an supply chain. If a step in the process is effective maintenance strategy. Omitting any skipped, or performed at a substandard element will result in poor equipment level, the process creates defects known as performance, increased maintenance costs failures. The output of a healthy reliability or both. process is optimal asset reliability at optimal cost. For example, Work Identification systematically identifies the Right Work to Asset Reliability Process measures are be performed at the Right Time. Without leading indicators. They monitor if the tasks proper Work Identification, maintenance are being performed that will ‘lead to resources may be wasted. Unnecessary or results’. For example a leading process incorrect work will be planned. Once indicator would monitor if the planning function was taking place. If people are Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 6 of 16
    • doing all the right things then the results will indication if the requirements of each follow. The leading ‘process’ indicators are element are being satisfied and, if not, what more immediate than results measures. action should be taken to correct the lack of maintenance process adherence. Result measures monitor the products of the Asset Reliability Process. Result measures Work Identification include maintenance cost (as a contributor to total operating cost), asset downtime due The function of work identification is to to planned and unplanned maintenance (as identify the ‘right work at the right time. a contributor to availability) and number of failures on assets (the measure of reliability: 1. Work Requests this can then be translated into mean time Initiating a work request is one method of between failures). Results measures lag. identifying work. Once a work request is Failure is a good example. Typically the submitted it must be reviewed, validated and same piece of equipment doesn’t fail day approved before it becomes an actual work after day. Take a pump for example. Say the order ready to be planned. If the work pump fails on average once every 8 months. request process is performing well, the If we improve its reliability by 50% it will now validation and approval/rejection of work fail every 12 months. You have to wait at requests should occur promptly. least 12 months to see the improvement. A suggested measure for the work request Key performance indicators for the process is: maintenance function need to include both leading (maintenance process) measures and lagging (result) measures. This paper ♦ The percentage of work requests focuses on identifying both leading and remaining in “Request” status for less lagging measures of maintenance than 5 days, over a specified time period performance. Collectively, these (for example the last 30 days). The measurements are the key performance world class maintenance expectation is indicators for the maintenance function. that most work (>80%) requests would be reviewed and validated within a Reliability Process Key Performance maximum of 5 days. Indicators – Leading Measures Work requests rely on the random The maintenance process is made up of identification of problems or potential elements. All elements are required to problems and bringing them to the attention complete the supply chain. Key performance of maintenance to address them. In a world indicators of the maintenance process are class organization, work identification is not process assurance measures. They answer left to chance. the question ‘how do I know that this maintenance process element is being 2. Proactive Work performed well?’ The day-to-day execution The ‘Asset Maintenance Program’ is of maintenance is addressed through the designed to identify potential failure seven elements of the Reliability Process; conditions, changes in state of hidden Business Focus, Work Identification, Work functions and known age related failure Planning, Work Scheduling, Work causes. The development of the Asset Execution, Follow-up and Performance Maintenance Program defines the routine Analysis. Key performance indicators for maintenance tasks that must be executed to each element are recommended. achieve the performance levels required to meet business requirements. If the ‘Asset It should be noted that variations of these Maintenance Program’ is effective, it will metrics may be defined or additional successfully identify and address most performance metrics may be used. The maintenance preventable causes of failure. metrics presented here provide a clear Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 7 of 16
    • If the ‘Work Identification’ function is working ♦ The percentage of work orders in well, the majority of work performed by ‘planning status’ for less than 5 days, maintenance would consist of executing the over a specified time period. A world Asset Maintenance Program (AMP) tasks class performance level of at least 80% and the corrective work originating from it. of all work orders processed in 5 days or less should be possible. Some work The key performance indicator for the work orders will require more time to plan but identification element is: attention must be paid to 'late finish or required by date'. ♦ The percentage of available man-hours used for proactive work (AMP + AMP 5. Quality of Planning initiated corrective work) over a specified These key performance indicators for time period. The world class maintenance planning do not reflect the quality of the target for proactive work is 75 to 80%. planning being done. A critical aspect of Recognizing that 5 -10% of available man- planning is estimating resources. The quality hours should be attributed to improvement of planning can be measured by monitoring work (non-maintenance) this would leave the accuracy of estimating. Labor and approximately 10% - 15% reactive work. material resources are the dominant resources specified on a work order. Work Planning The accuracy of estimating labor can be The primary function of the Work Planning measured by: element of the maintenance process is to prepare the work to achieve maximum efficiency in execution. ♦ The percentage of work orders with man-hour estimates within 10% of 3. Amount of Planned Work actual over the specified time period. Estimating accuracy of greater than In general terms, planning defines how to do 90% would be the expected level of the job and identifies all the required world class maintenance performance. resources and any special requirements to execute the work. A properly planned work A second metric of planning quality, order would include all this information. addressing material estimates, would be: Maximizing maintenance efficiency requires a high percentage of planned work. ♦ The percentage of planned, scheduled and assigned work orders, where A measure of whether planning is taking execution is delayed due to the need for place is: materials (spare parts) over the specified time period. The world class ♦ The percentage of all work orders, over maintenance expectation is that less a specified time period, with all the than 2% of all work assigned will have a planning fields completed (ex. Labor material deficiency (due to assignments, task durations, work planning).Note: this assumes the job priority, required by date, etc). The world should not have been scheduled if the class expectation is that >95% of all jobs materials were not available. Therefore, should be planned. the problem is that the work order did not account for all the required 4. Responsiveness of Planning materials. Another key performance indicator for Work Scheduling planning is the time it takes a work order to be planned. A suggested measure of this is: Good planning is a prerequisite to scheduling. The primary function of scheduling is to coordinate the availability of Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 8 of 16
    • the asset(s) to be maintained with all the ♦ The percentage of scheduled available required resources; labor, material and man-hours to total available man-hours services creating a schedule to execute ‘the over the specified time period. A world right work at the right time’. The schedule is class target of >80% of man-hours a contract between operations and should be applied to scheduled work. maintenance. The ‘right work at the right It is not desirable to schedule 100% of time’ implies that this work must be available man-hours within a schedule executed within the specified time period to period, because we recognize that additional achieve the desired level of performance. work will arise after the schedule has been Failure to execute within the schedule period cast. This includes both emergency work will increase the risk of failure. and other schedule write-ins that must be accommodated during the schedule period. With good work identification, planning and scheduling in place, the weekly maintenance Work Execution schedule should be produced several days in advance of the beginning of the schedule Work execution begins with the assignment period. There should be confidence that this of work to the people responsible for schedule reflects the work that will be executing it and ends when the individuals completed through the schedule period. charged with responsibility for execution provide feedback on the completed work. 6. Quality of Scheduling A key performance indicator for the 7. Schedule Compliance scheduling function is: With a high quality of work identification, ♦ The percentage of work orders, over the planning and scheduling, maintenance specified time period, that have a resources should execute according to the scheduled date earlier or equal to the plan and schedule. Therefore, a key ‘late finish or required by date’. A world performance indicator of execution is class maintenance target of >95% schedule compliance. Schedule compliance should be expected in order to ensure is defined as: the majority of the work orders are completed before their 'late finish or ♦ The percentage of work orders required-by date.' completed during the schedule period before the late finish or required by date. A second measure of the quality of World class maintenance should scheduling is: achieve >90% schedule compliance during execution. ♦ The percentage of work orders assigned “Delay” status due to unavailability of 8. Quality of Work Execution manpower, equipment, space or Work execution quality is measured by: services over the specified time period. Volume of Scheduled Work ♦ The percentage of rework. World class levels of maintenance rework are less The scheduling of properly planned work is than 3%. also important to maximize maintenance efficiency. We would anticipate that a high 9. Work Order Completion percentage of the available maintenance The purpose of identifying maintenance man-hours would be committed to a process key performance indicators is to schedule. A second scheduling key help manage the maintenance process. The performance indicator measures: ability to successfully monitor and manage the process and measure the results of the process is highly dependent on gathering Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 9 of 16
    • correct information during work execution. should be reviewed and closed within 3 The vehicle for collecting this information is days. the work order. Work orders should account for ‘all’ work performed on assets. This is Performance Analysis necessary to gather accurate maintenance cost and history data, enabling the The performance analysis element of the management of the physical asset through maintenance process evaluates its life cycle. maintenance effectiveness by focusing on key performance indicators of maintenance A returned work order should indicate the results. Gaps between the actual and status of the job (complete, incomplete), the required performance of the maintained actual labor and material consumed, an asset are identified. Significant performance indication of what was done and/or what gaps are addressed by initiating work was found and recommendations for identification improvement actions to close additional work. In addition, information the performance gap. about process and equipment downtime and an indication of whether the maintenance 11. Presence of Performance Analysis conducted was in response to a failure One indication that performance analysis is should be provided. being executed is the existence of the maintenance result metrics described under The idea that the job is not done until the the next section of this paper entitled key work order is completed and returned is a performance indicators of maintenance significant challenge to many organizations. effectiveness (result measures). For this reason it is also important to have a key performance indicator on work order 12. Quality of Performance Analysis completion. This metric should look at: From a maintenance process perspective it ♦ The percentage of work orders turned in is important that these results are driving with all the data fields completed. World action. Therefore, a key performance class maintenance organizations indicator for performance analysis is a achieve 95% compliance. measure of: Follow-up ♦ The number of reliability improvement actions initiated through performance In the Follow-up element of the maintenance analysis during the specified period. No process, actions are initiated to address the absolute number is correct but no information identified during execution. number suggests inaction. Some key follow-up tasks include reviewing ♦ A second measure is the number of work order comments and closing out asset reliability actions resolved over the completed work orders, initiating corrective last month. In other words, a measure of work and initiating part and procedural how successful the organization is in updates as required. performance gap closure. 10. Work Order Closure Timely follow-up and closure of completed Key Performance Indicators of work orders is essential to maintenance Maintenance Effectiveness (Result success. A key performance indicator for Measures) follow-up is: The product of maintenance is reliability. A reliable asset is an asset that functions at ♦ The percentage of work orders closed the level of performance that satisfies the within a maximum of 3 days, over the needs of the user. Reliability is assessed by specified time period. The expectation is measuring failure. that >95% of all completed work orders Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 10 of 16
    • Failures ♦ The number and frequency of asset failures by area of consequence. There The primary function of maintenance is to is no universal standard for this metric reduce or eliminate the consequences of because of the diversity of industries physical asset failures. The definition of and even plants within industry functional failure is anytime that asset segments. It is however reasonable to performance falls below its required expect a downward trend and to set performance. Therefore a key performance reduction targets based on current indicator for maintenance effectiveness is performance levels and business needs. some measurement of failure on the asset(s). If the maintenance function is effective, failures on critical assets and thus Maintenance Costs their consequences should be reduced or eliminated. Maintenance costs are another direct measure of maintenance performance. Failure consequence impacts manufacturing Maintenance costs are impacted by both level key performance indicators. Failure maintenance effectiveness and the classification by consequence identifies the efficiency with which maintenance is contribution of maintenance function to performed. manufacturing level performance. Maintenance maximizes its effectiveness by ensuring that it performs “The Right Work at Failure consequences are classified into the the Right Time”. Proactive maintenance following categories: means intervening before the failure event occurs. The impact of proactive 1. Hidden Consequence – there is no maintenance is not only to minimize the direct consequence of a single point safety, environmental and operational failure other than exposure to the consequences of failure but also to reduce increased risk of a multiple failure (a the cost of maintenance by reducing second failure has to occur to secondary damage. For example, if the experience a consequence). potential failure of a pump bearing was detected proactively, the catastrophic failure 2. Safety Consequence – a single point of the bearing could be prevented. The failure results in a loss of function or catastrophic failure of the pump bearing other damage which could injure or kill would likely result in damage to the casing, someone. wear rings, impeller, mechanical seals, etc. 3. Environmental Consequence –a single The corrective repair would require an point failure results in a loss of function extensive pump rebuild. Utilizing a proactive or other damage which breaches any task such as vibration monitoring to detect known environmental standard or the bearing deterioration permits the regulation; scheduled replacement of the bearing prior to the occurrence of secondary damage. 4. Operational Consequence – a single Less secondary damage means that it takes point failure has a direct adverse effect less time to repair (labor savings) and on operational capability (output, consumes fewer parts (material savings). product quality, customer service or The overall effect is the repair costs much operating costs in addition to the direct less. cost of repair). 5. Non-Operational Consequence – a Maintenance costs are also impacted by single point failure involving only the increasing the efficiency of maintenance. cost of repair. These efficiency gains are achieved through improved planning and scheduling of “the Therefore, it is important to track: right work at the right time”. Published data suggests that companies with estimated wrench times of 25% to 30% can increase Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 11 of 16
    • wrench time to between 40% and 60% Through more formal work identification and through better planning and scheduling. enhanced planning and scheduling shutdown overruns should be minimized. There are several useful maintenance cost related measures: Useful key performance indicators associated with asset downtime attributable ♦ Maintenance Cost: The target to maintenance are: maintenance cost depends on the asset and its operating context (how the asset ♦ Unscheduled downtime (hours) is applied and used). ♦ Scheduled downtime (hours) ♦ Maintenance Cost / Unit Output: The ♦ Shutdown overrun (hours) target maintenance cost depends on the asset and its operating context (how the Note: It is useful to distinguish between ‘equipment asset is applied and used). down’ where a specific piece of equipment is unavailable and ‘process down’ where production has ♦ Maintenance Cost / Replacement Asset stopped. Value of Plant and Equipment: This metric is a useful benchmark at a plant The Importance of the Work Order and corporate level. The world class benchmark is between 2% and 3%. Implementation of the suggested key ♦ Total Maintenance Cost / Total performance indicators for the maintenance Manufacturing Cost: This metric is a function requires a reliable source of data on useful benchmark at a plant and asset failures, maintenance costs and corporate level. The world class downtime. Any time maintenance is benchmark is <10% to 15%. performed on an asset a record should be ♦ Total Maintenance Cost /Total Sales: kept. The vehicle for collecting this data is This metric is a useful benchmark at a the maintenance work order. plant and corporate level. The world class benchmark is between 6% and Whenever maintenance is performed 8%. against an asset, work order completion data should include the following Maintenance Related Downtime information: The maintenance function’s impact on asset ♦ Identification of the asset at the level in availability is through minimizing downtime the asset hierarchy where the work was attributed to maintenance. This includes performed. both scheduled and unscheduled ♦ Date, time and duration of the maintenance related downtime. A key maintenance event. objective of proactive maintenance is to ♦ An indication if failure has occurred: yes identify potential failures with sufficient lead- or no (no if proactive) time to plan and schedule the corrective ♦ When failure has occurred, identification work before actual failure occurs. If the of the failure consequence: {hidden, maintenance function is successful safety, environment, operational unscheduled maintenance related downtime (product quality, throughput, customer will be reduced. service, operating costs) or non- operational involving only the cost of It is equally important to measure scheduled repair only} downtime. The work identification element of ♦ actual costs (labor, materials, services, the maintenance process strives to eliminate etc) unnecessary scheduled maintenance by ♦ process downtime (loss of production) focusing on only performing the ‘right work ♦ asset downtime (equipment out of at right time’. service but process still able to produce) Queries in your computerized maintenance management system can then be developed Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 12 of 16
    • to track and report key performance indicators for asset failure, maintenance costs and downtime. Reporting and Use of Key Performance Indicators Maintenance and reliability business process metrics (leading indicators) provide a clear indication of compliance to the maintenance business process. They indicate where to take specific action because of a gap in the way maintenance is being performed. This gap in the execution of the maintenance process will ‘eventually’ lead to asset failure(s). The consequence of these failures translates into poor manufacturing performance. These key performance indicators should be aligned with defined roles and responsibilities for the maintenance function against the assets for which they apply. For example, a planner responsible for ‘Area A’ would be responsible for the planning function key performance indicators for the ‘Area A’ assets. The manager responsible for ‘Area A’ assets would monitor all process and result metrics for Area A. Each metric should roll up the asset hierarchy, in alignment with individual responsibility for the assets. Management action is directed at improving compliance with the requirements of Work Identification, Planning, Scheduling, Execution and Follow- up. In this way, the process is managed leading to world class results. This logic is repeated at each level of management in the organization. At the plant and/or corporate level, management is exercising accountability for plant-wide maintenance metrics, both process and results. Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 13 of 16
    • Appendix 1: Summary of Maintenance Key Performance Indicators Type of Measuring Key Performance Indicator World Class Target Level Measure Result 1 Cost Maintenance Cost Context specific Lagging Result Maintenance Cost / Replacement 2 Cost 2 - 3% Lagging Asset Value of Plant and Equipment Result Maintenance Cost / Manufacturing 3 Cost < 10 – 15% Lagging Cost Result 4 Cost Maintenance Cost / Unit Output Context specific Lagging Result 5 Cost Maintenance Cost / Total Sales 6 - 8% Lagging Result 6 Failures Mean Time Between Failure (MTBF) Context specific Lagging Result 7 Failures Failure Frequency Context specific Lagging Result Unscheduled Maintenance Related 8 Downtime Context specific Lagging Downtime (hours) Result Scheduled Maintenance Related 9 Downtime Context specific Lagging Downtime (hours) Result Maintenance Related Shutdown 10 Downtime Context specific Lagging Overrun (hours) 80% of all work requests should be processed in 5 days or less. Some Percentage of work requests remaining Process Work work requests will require more time 11 in “Request” status for less than 5 Leading Identification to review but attention must be paid days, over the specified time period. to 'late finish date' or required by date. Target for proactive work is 75 to Percentage of available man-hours 80%. Recognizing 5 -10% of available Process Work used for proactive work (AMP + AMP man-hours attributed to redesign or 12 Leading Identification initiated corrective work) over a modification (improvement work) this specified time period. would leave approximately 10% - 15% reactive. Percentage of available man-hours Process Work Expect a level of 5 to 10% of man- 13 used on modifications over the Leading Identification hours spent on modification work. specified time period. Percentage of work orders with man- Estimating accuracy of greater than Process 14 Work Planning hour estimates within 10% of actual 90% would be the expected level of Leading over the specified time period. performance. 95% + should be expected. Expect a Percentage of work orders, over the Process high level of compliance for these 15 Work Planning specified time period, with all planning Leading fields to enable the scheduling fields completed. function to work. Percentage of Work Orders assigned Process, “Rework” status (Due to a need for 16 Work Planning This level should not exceed 2 to 3%. Leading additional Planning) over the last month. 80% of all work orders should be Percentage of Work Orders in “New” or possible to process in 5 days or less. Process, 17 Work Planning “Planning” status less than 5 days, Some work orders will require more Leading over the last month. time to plan but attention must be paid to 'late finish date'. Percentage of work orders, over the 95%+ should be expected in order to Process, Work specified time period, having a ensure the majority of the work orders 18 Leading Scheduling scheduled date earlier or equal to the are completed before their 'late finish late finish or required by date. date.' Percentage of scheduled available Process, Work Target 80% of man-hours applied to 19 man-hours to total available man-hours Leading Scheduling scheduled work. over the specified time period. Percentage of Work Orders assigned Process, Work “Delay” status due to unavailability of This number should not exceed 3 to 20 Leading Scheduling manpower, equipment, space or 5%. services over the specified time period. Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 14 of 16
    • Type of Measuring Key Performance Indicator World Class Target Level Measure Percentage of Work Orders completed Schedule compliance of 90%+ should Process, Work 21 during the schedule period before the be achieved. Leading Execution late finish or required by date. Process, Work Percentage of maintenance work 22 Rework should be less than 3%. Leading Execution orders requiring rework. Percentage of work orders with all data Should achieve 95%+. Expectation is Process, Work 23 fields completed over the specified that work orders are completed Leading Execution time period. properly. Percentage of work orders closed Should achieve 95%+. Expectation is Process, Work 24 within 3 days, over the specified time that work orders are reviewed and Leading Follow-up period. closed promptly. No number is correct but level of Number of asset reliability relative activity is important. No Process, Performance improvement actions initiated by the 25 actions being initiated when lots of Leading Analysis performance analysis function, over performance gaps exist is the specified time period. inappropriate. Number of equipment reliability Process, Performance improvement actions resolved, over 26 This is a measure of project success. Leading Analysis the specified time period. (Did we achieve performance gap closure) Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 15 of 16
    • Appendix 2: Example of How Maintenance KPI’s Are Used Maintenance Process Key Performance Indicators Maintenance Results (Lagging) Key Performance Indicators Maintenance Benchmarks - Number of functional failures 1) Total 2) Sub-total by Failure Consequence - Maintenance Cost / Unit Output Hidden Safety - % Maintenance Cost / Replacement Asset Value Environmental Operational - % Total Maintenance Cost / Total Manufacturing Cost Quality Output - % Total Maintenance Cost / Total Sales Customer Service Operating Cost Non-Operational (only cost of repair) - Maintenance related downtime 1) Unscheduled downtime (hours) 2) Scheduled downtime (hours) Note: Key performance indicators are summarized and 3) Shutdown overruns (hours) reported for all assets at the level of organizational - Maintenance cost responsibility . 1) Total maintenance cost Work Identification Work Planning Work Scheduling Work Execution Follow-up Performance Analysis - % work orders - trend number of - % planned work - % work orders with - % work orders - % proactive work completed during the asset reliability a scheduled date closed within x days - % work orders with schedule period improvement actions - % improvement less than or equal to labor estimates (schedule initiated work 'required by' date. - % work requests in within 10% of actuals compliance) - track number of request status < x - % work orders - % of scheduled - % rework asset reliability days requiring rework due available man-hours improvement actions to total available - % of work orders resolved to planning man-hours with alll work order - % work orders in completion data planning status < x - % work orders fields completed days assigned 'delay' status due to the unavailability of manpower, materials, equipment, space or services Maintenance Process (Leading) Key Performance Indicators Confidential information of Ivara Corporation. Ivara is a registered trademark of Ivara Corporation. Not to be copied, disclosed or electronically distributed without written permission from Ivara. Page 16 of 16