KPI SMRP Presentation
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KPI SMRP Presentation Presentation Transcript

  • 1. Key Performance Indicators Presented by: Ricky Smith CMRP May 7, 2009
  • 2.
    • “ The problem with Management is they’re
    • measuring the wrong things.”
    • ― Peter Drucker
  • 3.  
  • 4. Leading KPIs – “MAINTENANCE PRACTICES” MTBF Rework Scheduled Compliance % of Planned Work PM/PdM Compliance No Defects Cost
  • 5. Lagging KPIs Leading KPIs Leading KPIs Leading KPIs Leading KPIs Lagging KPIs
  • 6.  
  • 7. Leading and Lagging KPIs
  • 8. Metrics – Leading and Lagging Leading KPI Key Performance Indicator World Class Target Level Lagging KPI 1 Cost Maintenance Cost Flat or decreasing Total Cost 2 Cost Maintenance Cost / RAV 2 - 3% Total Cost/ RAV 3 Cost Maintenance Material Cost / RAV .25-.75% Maintenance Cost / RAV 5 Cost Maintenance Cost per Unit Output Context specific Total Cost per Unit Output 6 Cost Maintenance Cost / Total Sales 6 - 8% Total Cost per Sales 7 Reliability Mean Time Between Failure (MTBF) Context specific Maintenance Cost 8 Reliability Failure Frequency Context specific Maintenance Cost 17 Reliability % of Assets with No ID Defect 95% Maintenance Cost - Capacity 9 Production Production Efficiency 99% Total Cost per Unit Output
  • 9. How do you determine which metric to use?
    • On any process ask the question “how will you know if the process is effective?”
    • Identify in a process map where a metric is needed
    • Identify which metrics are KPIs
    • Be sure the metric you chose drives the right behavior, ie. PM Compliance
  • 10. Driving the right behavior
    • PM Compliance
      • Does it tell you anything?
      • Yes, it provides information which tells if the PM is completed – but with how much variation?
    • PM Compliance with the 10% Rule
      • PMs are completed within 10% of the time frequency
      • Example = 30 Day PM
      • 10% Rule = 3 days to complete
    May 2 May 28 June 1 June 28 July 28 July 4 3 day PM 58 day PM
  • 11. What is it you really want to know?
    • Is your PM Program Effective?
    • What metrics would measure effectiveness
      • PM Labor Hours vs EM Labor Hours
  • 12. Steps to Success
    • Map your processes and identify leading and lagging KPIs in them
    • Be sure and have clear definitions of your KPIs
    • Assign RACI to metrics
      • Responsible
      • Accountable
      • Consulted
      • Informed
    • Develop scorecards from lowest level to highest (4-6 KPIs)
  • 13. SMRP Metrics
  • 14. SMRP Metrics
  • 15.
    • “ The problems we face today cannot be solved with the same level of thinking we were at when we created them.”
    • –Albert Einstein
  • 16.
    • Email me at [email_address]
    Questions? % of Assets with No Identifiable Defects