Leading and Lagging Key Performance Indicators


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Performance measurement is a fundamental principle of management. The measurement of performance is important because it identifies current performance gaps between current and desired performance and provides indication of progress towards closing the gaps. Carefully selected key performance indicators identify precisely where to take action to improve performance.

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Leading and Lagging Key Performance Indicators

  1. 1. Chapter 6.3 in“Rules of Thumb for Maintenance and Reliability Engineers” www.amazon.com by Ricky Smith and Keith Mobley KEY PERFORMANCE INDICATORS Measuring and Managing the Maintenance Function January 2006 By Ron Thomas
  2. 2. assets can be defined. Manufacturing performance requirements can be associated with quality, availability, customer service, operating costs, safety Maintenance Key Performance and environmental integrity. Indicators To achieve this performance there are threeIntroduction inputs to be managed. The first requirement is Design Practices. Design practices “It is not possible to manage what you cannot provide capable equipment "by design" control and you cannot control what you cannot (inherent capability), to meet the measure!” (Peter Drucker) manufacturing performance requirements.Performance measurement is a fundamental The second requirement is Operatingprinciple of management. The measurement Practices that make use of the inherentof performance is important because it capability of process equipment. Theidentifies current performance gaps between documentation of standard operatingcurrent and desired performance and practices assures the consistent and correctprovides indication of progress towards operation of equipment to maximizeclosing the gaps. Carefully selected key performance.performance indicators identify preciselywhere to take action to improve The third requirement is Maintenanceperformance. Practices that maintain the inherent capability of the equipment. DeteriorationThis paper deals with the identification of begins to take place as soon as equipmentkey performance indicators for the is commissioned. In addition to normal wearmaintenance function, by first looking at the and deterioration, other failures may alsoways that maintenance performance metrics occur. This happens when equipment isrelate to manufacturing metrics. Since pushed beyond the limitations of its designperformance measurements for or operational errors occur. Degradation inmaintenance must include both results equipment condition results in reducedmetrics and metrics for the process that equipment capability. Equipment downtime,produces the results, this document quality problems or the potential forpresents a representation for the business accidents and/or environmental excursionsprocess for maintenance. The document are the visible outcome. All of these canthen identifies typical business process and negatively impact operating cost.results metrics that can be used as keyperformance indicators for the maintenancefunction.Physical Asset ManagementThe purpose of most equipment inmanufacturing is to support the production ofproduct destined to downstream customers.Ultimately the focus is on meeting customerneeds. This is illustrated in Figure 1.Customer expectations are normally definedin terms of product quality, on-time deliveryand competitive pricing. By reviewing thecomposite requirements of all currentcustomers and potential customers in those Figure 1: Managing manufacturing performancemarkets we wish to penetrate, the requirements to meet customer needsperformance requirements of our physical
  3. 3. supply or production scheduling delaysManufacturing key performance indicators beyond the control of the maintenanceprovide information on the current state of function. Asset utilization is also a functionmanufacturing. Asset capability, operating of operating rate, quality and yield losses,practices and the maintenance of asset etc. In each of these areas maintenancecondition all contribute to the ability to meet may be a factor but it is not the onlythese performance requirements. contributor. In order to maintain and improve performance each function in theSome typical key performance indicators for organization must focus on the portion of themanufacturing include operating cost; asset indicators that they influence.availability, lost time injuries, number ofenvironmental incidents, OEE and asset Similarly, other manufacturing levelutilization. performance indicators are not only a function of maintenance. They are affectedConsider asset utilization, as depicted in by causes beyond the control of theFigure 2. Asset utilization is a manufacturing maintenance function. Asset capability,level key performance indicator. It is a operating practices and the maintenance offunction of many variables. For example, asset condition all contribute to the ability toasset utilization is impacted by both meet performance requirements. If amaintenance and non-maintenance related manufacturing level indicator is used todowntime. Non-maintenance related measure maintenance performance,downtime may be attributed to lack of improved maintenance may not result in ademand, an interruption in raw material proportional improvement in the manufacturing metric. For instance, in the asset utilization example, cited above, the maintenance contributors may all be positive 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. Figure 2: Asset Utilization is an example of a manufacturing level key performance indicator. Key performance indicators for maintenance are selected ensuring a direct correlation between the maintenance activity and the key performance indicator measuring it. 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?”
  4. 4. much larger business process responsibleThis paper focuses on defining key for managing the total enterprise.performance indicators for the maintenancefunction, not the maintenance organization. Figure 3: The Asset Reliability Process identifies whats 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 inorganization. Similarly, the maintenance the model aims to deliver the performancedepartment has added responsibilities required by the enterprise to meet all of itsbeyond the maintenance function and, as corporate objectives. Each element withinsuch, 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 elementindicators for the maintenance organization follows:may include key performance indicators forother areas of accountability such as health Business Focus, represented by the greenand safety performance, employee box on the left, focuses the maintenance ofperformance management, training and physical asset reliability on the businessdevelopment, etc. goals of the company. The potential contribution of the asset base to these goalsThe Asset Reliability Process is evaluated. The largest contributors are recognized as critical assets and specificThe management of physical asset performance targets identified.performance is integral to business success.What we manage are the businessprocesses required to produce results. One Work Identification, as a process,of these business processes is responsible produces technically based Asset Reliabilityfor the maintenance of physical asset Programs. Program activities identify andreliability. The Asset Reliability Process is control failure modes impacting on theshown in Figure 3. It is an integral part of a equipments ability to perform the intended function at the required performance level.
  5. 5. Activities are evaluated to judge if they are proper Work Identification, maintenanceworth doing based on the consequences of resources may be wasted. Unnecessary orfailure. incorrect work will be planned. Once executed, this work may not achieve thePlanning develops procedures and work desired performance results, despiteorders for these work activities. The significant maintenance costs. Withoutprocedures identify resource requirements, Planning the correct and efficient executionsafety precautions and special work of the work is left to chance. The Plannedinstructions required to execute the work. Maintenance Process is a cycle. Maintenance work is targeted to achieveScheduling evaluates the availability of all required asset performance. Itsresources required for work "due" in a effectiveness is reviewed and improvementspecified time frame. Often this work opportunities identified. This guaranteesrequires the equipment to be shut down. A continuous improvement in processreview of production schedules is required. performance impacted by Maintenance.Resources are attached to a specific workschedule. The use of resources is balanced Within the Planned Maintenance Processout. two internal loops exist. Planning,In the Execution process, trained, Scheduling, Execution and Follow Up makecompetent personnel carry out the required up the first loop. Once maintenancework. activities are initially identified, an asset maintenance program, based on currentThe Follow-up process responds to knowledge and requirements, is initiated.information collected in the execution The selected maintenance activities will beprocess. Work order completion comments enacted upon at the designed frequency andoutline what was done and what was found. maintenance tolerance limits. The process isActual time and manpower, to complete the self-sustaining.job, is documented. Job status is updated ascomplete or incomplete. Corrective work The second loop consists of the Workrequests, resulting from the analysis of Identification and Performance Analysisinspection data, are created. Requests are elements. This is the continuousmade for changes to drawings and improvement loop. Actual assetprocedures. performance is monitored relative to the required performance (driven by businessThe process of Performance Analysis needs). Performance gaps are identified.evaluates maintenance program The ‘cause’ of these gaps is established andeffectiveness. Gaps between actual process corrective action recommended.performance and the required performanceare identified. Historical maintenance data is Performance Metrics for the Maintenancecompared to the current process Functionperformance. Maintenance activity costs arereviewed. Significant performance gaps are The Asset Reliability Process represents theaddressed by revisiting the Work collection of ‘all’ tasks required to supportIdentification function. the maintenance function. The process is a supply chain. If a step in the process isEach element is important to provide an skipped, or performed at a substandardeffective maintenance strategy. Omitting any level, the process creates defects known aselement will result in poor equipment failures. The output of a healthy reliabilityperformance, increased maintenance costs process is optimal asset reliability at optimalor both. cost.For example, Work Identification Asset Reliability Process measures aresystematically identifies the Right Work to leading indicators. They monitor if the tasksbe performed at the Right Time. Without are being performed that will ‘lead to
  6. 6. results’. For example a leading process It should be noted that variations of theseindicator would monitor if the planning metrics may be defined or additionalfunction was taking place. If people are performance metrics may be used. Thedoing all the right things then the results will metrics presented here provide a clearfollow. The leading ‘process’ indicators are indication if the requirements of eachmore immediate than results measures. element are being satisfied and, if not, what action should be taken to correct the lack ofResult measures monitor the products of the maintenance process adherence.Asset Reliability Process. Result measuresinclude maintenance cost (as a contributor Work Identificationto total operating cost), asset downtime dueto planned and unplanned maintenance (as The function of work identification is toa contributor to availability) and number of identify the ‘right work at the right time.failures on assets (the measure of reliability:this can then be translated into mean time 1. Work Requestsbetween failures). Results measures lag. Initiating a work request is one method ofFailure is a good example. Typically the identifying work. Once a work request issame piece of equipment doesn’t fail day submitted it must be reviewed, validated andafter day. Take a pump for example. Say the approved before it becomes an actual workpump fails on average once every 8 months. order ready to be planned. If the workIf we improve its reliability by 50% it will now request process is performing well, thefail every 12 months. You have to wait at validation and approval/rejection of workleast 12 months to see the improvement. requests should occur promptly.Key performance indicators for the A suggested measure for the work requestmaintenance function need to include both process is:leading (maintenance process) measuresand lagging (result) measures. This paperfocuses on identifying both leading and ♦ The percentage of work requestslagging measures of maintenance remaining in “Request” status for lessperformance. Collectively, these than 5 days, over a specified time periodmeasurements are the key performance (for example the last 30 days). Theindicators for the maintenance function. world class maintenance expectation is that most work (>80%) requests wouldReliability Process Key Performance be reviewed and validated within aIndicators – Leading Measures maximum of 5 days.The maintenance process is made up of Work requests rely on the randomelements. All elements are required to identification of problems or potentialcomplete the supply chain. Key performance problems and bringing them to the attentionindicators of the maintenance process are of maintenance to address them. In a worldprocess assurance measures. They answer class organization, work identification is notthe question ‘how do I know that this left to chance.maintenance process element is beingperformed well?’ The day-to-day execution 2. Proactive Workof maintenance is addressed through the The ‘Asset Maintenance Program’ isseven elements of the Reliability Process; designed to identify potential failureBusiness Focus, Work Identification, Work conditions, changes in state of hiddenPlanning, Work Scheduling, Work functions and known age related failureExecution, Follow-up and Performance causes. The development of the AssetAnalysis. Key performance indicators for Maintenance Program defines the routineeach element are recommended. maintenance tasks that must be executed to achieve the performance levels required to meet business requirements. If the ‘Asset
  7. 7. Maintenance Program’ is effective, it will Another key performance indicator for successfully identify and address most planning is the time it takes a work order to maintenance preventable causes of failure. be planned. A suggested measure of this is: 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. Work Scheduling
  8. 8. schedule. A second scheduling keyGood planning is a prerequisite to performance indicator measures:scheduling. The primary function ofscheduling is to coordinate the availability of ♦ The percentage of scheduled availablethe asset(s) to be maintained with all the man-hours to total available man-hoursrequired resources; labor, material and over the specified time period. A worldservices creating a schedule to execute ‘the class target of >80% of man-hoursright work at the right time’. The schedule is should be applied to scheduled work.a contract between operations and It is not desirable to schedule 100% ofmaintenance. The ‘right work at the right available man-hours within a scheduletime’ implies that this work must be period, because we recognize that additionalexecuted within the specified time period to work will arise after the schedule has beenachieve the desired level of performance. cast. This includes both emergency workFailure to execute within the schedule period and other schedule write-ins that must bewill increase the risk of failure. accommodated during the schedule period.With good work identification, planning and Work Executionscheduling in place, the weekly maintenanceschedule should be produced several days Work execution begins with the assignmentin advance of the beginning of the schedule of work to the people responsible forperiod. There should be confidence that this executing it and ends when the individualsschedule reflects the work that will be charged with responsibility for executioncompleted through the schedule period. provide feedback on the completed work.6. Quality of Scheduling 7. Schedule ComplianceA key performance indicator for thescheduling function is: With a high quality of work identification, planning and scheduling, maintenance♦ The percentage of work orders, over the resources should execute according to the specified time period, that have a plan and schedule. Therefore, a key scheduled date earlier or equal to the performance indicator of execution is ‘late finish or required by date’. A world schedule compliance. Schedule compliance class maintenance target of >95% is defined as: should be expected in order to ensure the majority of the work orders are ♦ The percentage of work orders completed before their late finish or completed during the schedule period required-by date. before the late finish or required by date. World class maintenance shouldA second measure of the quality of achieve >90% schedule compliancescheduling is: during execution.♦ The percentage of work orders assigned 8. Quality of Work Execution “Delay” status due to unavailability of Work execution quality is measured by: manpower, equipment, space or services over the specified time period. ♦ The percentage of rework. World classVolume of Scheduled Work levels of maintenance rework are less than 3%.The scheduling of properly planned work isalso important to maximize maintenance 9. Work Order Completionefficiency. We would anticipate that a high The purpose of identifying maintenancepercentage of the available maintenance process key performance indicators is toman-hours would be committed to a help manage the maintenance process. The
  9. 9. ability to successfully monitor and manage ♦ The percentage of work orders closedthe process and measure the results of the within a maximum of 3 days, over theprocess is highly dependent on gathering specified time period. The expectation iscorrect information during work execution. that >95% of all completed work ordersThe vehicle for collecting this information is should be reviewed and closed within 3the work order. Work orders should account days.for ‘all’ work performed on assets. This isnecessary to gather accurate maintenance Performance Analysiscost and history data, enabling themanagement of the physical asset through The performance analysis element of theits life cycle. maintenance process evaluates maintenance effectiveness by focusing onA returned work order should indicate the key performance indicators of maintenancestatus of the job (complete, incomplete), the results. Gaps between the actual andactual labor and material consumed, an required performance of the maintainedindication of what was done and/or what asset are identified. Significant performancewas found and recommendations for gaps are addressed by initiating workadditional work. In addition, information identification improvement actions to closeabout process and equipment downtime and the performance gap.an indication of whether the maintenanceconducted was in response to a failure 11. Presence of Performance Analysisshould be provided. One indication that performance analysis isThe idea that the job is not done until the being executed is the existence of thework order is completed and returned is a maintenance result metrics described undersignificant challenge to many organizations. the next section of this paper entitled keyFor this reason it is also important to have a performance indicators of maintenancekey performance indicator on work order effectiveness (result measures).completion. This metric should look at: 12. Quality of Performance Analysis♦ The percentage of work orders turned in From a maintenance process perspective it with all the data fields completed. World is important that these results are driving class maintenance organizations action. Therefore, a key performance achieve 95% compliance. indicator for performance analysis is a measure of:Follow-up ♦ The number of reliability improvementIn the Follow-up element of the maintenance actions initiated through performanceprocess, actions are initiated to address the analysis during the specified period. Noinformation identified during execution. absolute number is correct but noSome key follow-up tasks include reviewing number suggests inaction.work order comments and closing out ♦ A second measure is the number ofcompleted work orders, initiating corrective asset reliability actions resolved over thework and initiating part and procedural last month. In other words, a measure ofupdates as required. how successful the organization is in performance gap closure.10. Work Order ClosureTimely follow-up and closure of completedwork orders is essential to maintenance Key Performance Indicators ofsuccess. A key performance indicator for Maintenance Effectiveness (Resultfollow-up is: Measures)
  10. 10. The product of maintenance is reliability. A 5. Non-Operational Consequence – areliable asset is an asset that functions at single point failure involving only thethe level of performance that satisfies the cost of repair.needs of the user. Reliability is assessed bymeasuring failure. Therefore, it is important to track:Failures ♦ The number and frequency of asset failures by area of consequence. ThereThe primary function of maintenance is to is no universal standard for this metricreduce or eliminate the consequences of because of the diversity of industriesphysical asset failures. The definition of and even plants within industryfunctional failure is anytime that asset segments. It is however reasonable toperformance falls below its required expect a downward trend and to setperformance. Therefore a key performance reduction targets based on currentindicator for maintenance effectiveness is performance levels and business needs.some measurement of failure on theasset(s). If the maintenance function iseffective, failures on critical assets and thus Maintenance Coststheir consequences should be reduced oreliminated. Maintenance costs are another direct measure of maintenance performance.Failure consequence impacts manufacturing Maintenance costs are impacted by bothlevel key performance indicators. Failure maintenance effectiveness and theclassification by consequence identifies the efficiency with which maintenance iscontribution of maintenance function to performed.manufacturing level performance. Maintenance maximizes its effectiveness by ensuring that it performs “The Right Work atFailure consequences are classified into the the Right Time”. Proactive maintenancefollowing categories: means intervening before the failure event occurs. The impact of proactive1. 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 failure2. 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).
  11. 11. Maintenance costs are also impacted by It is equally important to measure scheduledincreasing the efficiency of maintenance. downtime. The work identification element ofThese efficiency gains are achieved through the maintenance process strives to eliminateimproved planning and scheduling of “the unnecessary scheduled maintenance byright work at the right time”. Published data focusing on only performing the ‘right worksuggests that companies with estimated at right time’.wrench times of 25% to 30% can increasewrench time to between 40% and 60% Through more formal work identification andthrough better planning and scheduling. enhanced planning and scheduling shutdown overruns should be minimized.There are several useful maintenance costrelated 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 followingMaintenance Related Downtime information:The maintenance function’s impact on asset ♦ Identification of the asset at the level inavailability is through minimizing downtime the asset hierarchy where the work wasattributed to maintenance. This includes performed.both scheduled and unscheduled ♦ Date, time and duration of themaintenance related downtime. A key maintenance event.objective of proactive maintenance is to ♦ An indication if failure has occurred: yesidentify potential failures with sufficient lead- or no (no if proactive)time to plan and schedule the corrective ♦ When failure has occurred, identificationwork before actual failure occurs. If the of the failure consequence: {hidden,maintenance function is successful safety, environment, operationalunscheduled maintenance related downtime (product quality, throughput, customerwill be reduced. service, operating costs) or non- operational involving only the cost of repair only}
  12. 12. ♦ actual costs (labor, materials, services, failures translates into poor manufacturing etc) performance.♦ process downtime (loss of production)♦ asset downtime (equipment out of Therefore, maintenance, reliability, service but process still able to produce) engineering and operations need to workQueries in your computerized maintenance together to define and measure the leadingmanagement system can then be developed indicators for the Asset Reliability Processto track and report key performance (the seven elements required to support theindicators for asset failure, maintenance maintenance function). The result will becosts and downtime. optimal asset reliability at optimal cost – the output of a healthy Asset Reliability Process.Reporting and Use of Key PerformanceIndicatorsKey performance indicators should bealigned with defined roles andresponsibilities for the maintenance functionagainst the assets for which they apply. Forexample, a planner responsible for ‘Area A’would be responsible for the planningfunction key performance indicators for the‘Area A’ assets.The manager responsible for ‘Area A’ assetswould monitor all process and result metricsfor Area A. Each metric should roll up theasset hierarchy, in alignment with individualresponsibility for the assets. Managementaction is directed at improving compliancewith the requirements of Work Identification,Planning, Scheduling, Execution and Follow-up. In this way, the process is managedleading to world class results. This logic isrepeated at each level of management in theorganization. At the plant and/or corporatelevel, management is exercisingaccountability for plant-wide maintenancemetrics, both process and results.ConclusionMaintenance and reliability businessprocess metrics (leading indicators) providea clear indication of compliance to themaintenance business process. Theyindicate where to take specific actionbecause of a gap in the way maintenance isbeing performed.This gap in the execution of themaintenance process will ‘eventually’ lead toasset failure(s). The consequence of these
  13. 13. Appendix 1: Summary of Maintenance Key Performance Indicators Type of Measuring Key Performance Indicator World Class Target Level Measure Result1 Cost Maintenance Cost Context specific Lagging Result Maintenance Cost / Replacement2 Cost 2 - 3% Lagging Asset Value of Plant and Equipment Result Maintenance Cost / Manufacturing3 Cost < 10 – 15% Lagging Cost Result4 Cost Maintenance Cost / Unit Output Context specific Lagging Result5 Cost Maintenance Cost / Total Sales 6 - 8% Lagging Result6 Failures Mean Time Between Failure (MTBF) Context specific Lagging Result7 Failures Failure Frequency Context specific Lagging Result Unscheduled Maintenance Related8 Downtime Context specific Lagging Downtime (hours) Result Scheduled Maintenance Related9 Downtime Context specific Lagging Downtime (hours) Result Maintenance Related Shutdown10 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 time11 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 or12 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 Process14 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 these15 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 for16 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 orders18 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 to19 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 to20 Leading Scheduling manpower, equipment, space or 5%. services over the specified time period.
  14. 14. Type of Measuring Key Performance Indicator World Class Target Level Measure Percentage of Work Orders completed Schedule compliance of 90%+ should Process, Work21 during the schedule period before the be achieved. Leading Execution late finish or required by date. Process, Work Percentage of maintenance work22 Rework should be less than 3%. Leading Execution orders requiring rework. Percentage of work orders with all data Should achieve 95%+. Expectation is Process, Work23 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, Work24 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 the25 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, over26 This is a measure of project success. Leading Analysis the specified time period. (Did we achieve performance gap closure)
  15. 15. 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 Environmental - % Maintenance Cost / Replacement Asset Value Operational Quality - % Total Maintenance Cost / Total Manufacturing Cost Output Customer Service - % Total Maintenance Cost / Total Sales Operating Cost Non-Operational (only cost of repair) - Maintenance related downtime 1) Unscheduled downtime (hours) 2) Scheduled downtime (hours) 3) Shutdown overruns (hours) Note: Key performance indicators are summarized and - Maintenance cost reported for all assets at the level of organizational 1) Total maintenance cost responsibility . 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 Indicators15