KPI SMRP Presentation


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KPI SMRP Presentation

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