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Maintenance KPI
Maintenance KPI
•It is not possible to manage what you cannot control
And
•You cannot control what you cannot measure
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
The measurement of performance is important:
• It identifies gaps between current and desired performance,
• It indicates of progress towards closing the gaps.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•Carefully selected KPI’s identify precisely where to take action to improve
performance.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
The purpose of most equipment in manufacturing is to support the
production of product destined to downstream customers
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
A key principle of performance management is to measure what you can
manage.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•When defining a KPI for maintenance a good test of the metric validity is to
seek an affirmative response to the questions:
1. If the maintenance function does ‘everything right’, will the suggested
metric always reflect a result proportional to the change;
2. or are there other factors, external to maintenance, that could mask
the improvement?
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
The Asset Reliability Process
It is an integral part of a much larger business process responsible for
managing the total enterprise.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Business Focus
•It focuses the maintenance of physical asset reliability on the
business goals of the company.
•The potential contribution of the asset base to these goals is
evaluated.
•The largest contributors are recognized as critical assets and
specific performance targets identified.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Work Identification
•Activities identify and control failure modes impacting the
equipment‘s performance.
•Activities are evaluated to judge if they are worth doing based
on the consequences of failure.
Performance Analysis
•It evaluates maintenance effectiveness.
•Gaps between actual process performance and the required
performance are identified.
•Historical maintenance data compared to current process
performance.
•Maintenance activity costs are reviewed.
•Gaps addressed by revisiting Work Identification function.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Planning
•It develops procedures and work orders for these work
activities.
Scheduling
•It evaluates the availability of all resources required for
work "due" in a specified time frame.
Execution process
•Trained, competent personnel carry out the work.
Follow-up process
•It responds to information collected in the execution
process.
•Work order completion comments outline what was
done and what was found.
Performance Metrics
for the Maintenance Function
•The Asset Reliability Process represents the collection of ‘all’ tasks
required to support the maintenance function.
•The process is a supply chain.
•If a step in the process is skipped, or performed at a substandard level,
the process creates defects known as failures.
•The output of a healthy reliability process is optimal asset reliability at
optimal cost.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
The elements are:
(a) the initial supplier (vendor or plant),
(b) a supplier,
(c) a manufacturer (production),
(d) a customer, and
(e) the final customer.
•It is a system of organizations, people, activities, information, and resources
involved in moving a product or service from supplier to customer.
•Supply chain activities transform natural resources, raw materials, and
components into a finished product that is delivered to the end customer.
Supply Chain
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
1- Asset Reliability Process measures are leading indicators.
•They monitor if the tasks are being performed that will ‘lead to results’.
•For example a leading process indicator would monitor if the planning
function was taking place.
2- Result measures monitor the products of the Asset Reliability Process.
They include:
•Maintenance cost (as a contributor to total operating cost),
•Asset downtime due to planned and unplanned maintenance (as a
contributor to availability) and
•Number of failures on assets (the measure of reliability: this can then be
translated into mean time between failures).
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
•Results measures lag.
•Failure is a good example.
Typically the same piece of equipment doesn’t fail day after day.
Take a pump for example.
Say the pump fails on average once every 8 months.
If we improve its reliability by 50% it will now fail every 12 months.
You have to wait at least 12 months to see the improvement.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
IdentificationPlanningSchedulingExecutionFollowUpAnalysis Reliability Process KPI
Leading Measures
•The maintenance process is made up of elements.
•All elements are required to complete the supply chain.
•KPI’s of the maintenance process are process assurance measures.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
They answer the question ‘how do I know that this maintenance process
element is being performed well?’
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
•The day-to-day execution of maintenance is addressed through the
seven elements of the Reliability Process:
1. Business Focus,
2. Work Identification,
3. Work Planning,
4. Work Scheduling,
5. Work Execution,
6. Follow-up,
7. Performance Analysis.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Key performance indicators for each element are recommended.
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Work Identification
The function of work identification is to identify the ‘right work at the
right time’.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
•Initiating a work request is one method of identifying work.
•Once a work request is submitted it must be reviewed, validated and
approved before it becomes an actual work order ready to be planned.
Work Requests
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
•A KPI for the work request process is:
The percentage of work requests remaining in “Request” status for
less than 5 days, over a specified time period (for example the last
30 days).
•The world class maintenance expectation is that most work (>80%)
requests would be reviewed and validated within a maximum of 5 days.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Proactive Work
•The Asset Maintenance Program (AMP) is designed to identify potential
failure conditions and known age related failure causes.
•The development of the AMP defines the routine maintenance tasks that
must be executed to achieve the performance levels required to meet
business requirements.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
If the AMP is effective, it will successfully identify and address most
maintenance preventable causes of failure.
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
•A good KPI is:
The percentage of available man-hours used for proactive work (AMP
+ AMP initiated corrective work) over a specified time period.
•The world class maintenance target for proactive work is 75 to 80%.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Recognizing that 5 -10% of available man-hours should be attributed to
improvement work (non-maintenance) this would leave approximately 10%
- 15% reactive work.
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
The primary function of the Work Planning element of the maintenance
process is to prepare the work to achieve maximum efficiency in
execution.
Work Planning
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Amount of Planned Work
The percentage of all work orders, over a specified time period, with all
the planning fields completed (ex. Labor assignments, task durations,
work priority, required by date, etc).
•The world class expectation is that >95% of all jobs should be planned.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Responsiveness of Planning
The percentage of work orders in ‘planning status’ for less than 5 days,
over a specified time period.
•A world class performance level of at least 80% of all work orders
processed in 5 days or less should be possible.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Some work orders will require more time to plan but attention must be paid to
'late finish or required by date'.
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Quality of Planning
The accuracy of estimating labor can be measured by:
The percentage of work orders with man-hour estimates within 10%
of actual over the specified time period.
•Estimating accuracy of greater than 90% would be the expected level of
world class maintenance performance.
The accuracy of estimating material can be measured by:
The percentage of planned, scheduled and assigned work orders,
where execution is delayed due to the need for materials (spare
parts) over the specified time period.
•The world class maintenance expectation is that less than 2% of all work
assigned will have a material deficiency (due to planning)
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Work Scheduling
•The primary function of scheduling is to coordinate the availability of the
asset(s) to be maintained with all the required resources, (labor, material
and services), creating a schedule.
•The schedule is a contract between operations and maintenance.
•Work must be executed within the specified time period to achieve the
desired level of performance.
•Failure to execute within the schedule period will increase the risk of
failure.
•Weekly maintenance schedule should be produced several days in
advance of the beginning of the schedule period.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Quality of Scheduling
The percentage of work orders, over the specified time period, that
have a scheduled date earlier or equal to the ‘late finish or required by
date’.
•A world class maintenance target of >95% should be expected in order to
ensure the majority of the work orders are completed before their 'late
finish or required-by date.'
The percentage of work orders assigned “Delay” status due to
unavailability of manpower, equipment, space or services over the
specified time period.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
The percentage of scheduled available man-hours to total available
man-hours over the specified time period.
•A world class target of >80% of man-hours should be applied to scheduled
work.
•It is not desirable to schedule 100% of available man-hours within a
schedule period, because we recognize that additional work will arise
after the schedule has been cast.
•This includes both emergency work and other schedule write-ins that
must be accommodated during the schedule period.
Volume of Scheduled Work
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Work Execution
•It begins with the assignment of work to the people responsible for
executing it.
•It ends when the individuals charged with responsibility for execution
provide feedback on the completed work.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Schedule Compliance
The percentage of work orders completed during the schedule period
before the late finish or required by date.
•World class maintenance should achieve >90% schedule compliance
during execution.
Quality of Work Execution
The percentage of rework.
•World class levels of maintenance rework
are less than 3%.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Work Order Completion
•The ability to successfully monitor and manage the process and measure
the results of the process is highly dependent on gathering correct
information during work execution.
•The vehicle for collecting this information is the work order.
•A returned work order should indicate:
the status of the job (complete, incomplete),
the actual labor,
material consumed,
what was done,
what was found and
recommendations for additional work.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
The percentage of work orders turned in with all the data fields
completed.
•World class maintenance organizations achieve 95% compliance.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Follow-up
•Follow-up tasks include:
reviewing work order comments,
closing out completed work orders,
initiating corrective work
and initiating part and procedural updates as required.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Work Order Closure
The percentage of work orders closed within a maximum of 3 days,
over the specified time period.
•The expectation is that >95% of all completed work orders should be
reviewed and closed within 3 days.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Performance Analysis
•It evaluates maintenance effectiveness by focusing on KPI’s of
maintenance results.
•Gaps between the actual and required performance of the maintained
asset are identified.
•Significant performance gaps are addressed by initiating work
identification improvement actions to close the performance gap.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Presence of Performance Analysis
One indication that performance analysis is being executed is the
existence of the maintenance result metrics described (result
measures).
Quality of Performance Analysis
The number of reliability improvement actions initiated through
performance analysis during the specified period.
•No absolute number is correct but no number suggests inaction.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IdentificationPlanningSchedulingExecutionFollowUpAnalysis
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
KPI’s of Maintenance Effectiveness
(Result Measures)
•The product of maintenance is reliability.
•A reliable asset is an asset that functions at the level of performance that
satisfies the needs of the user.
•Reliability is assessed by measuring failure
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
FailuresCostsDowntime
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Failures
Failure consequences are classified into:
1. Hidden Consequence,
2. Safety Consequence,
3. Environmental Consequence,
4. Operational Consequence, and
5. Non-Operational Consequence (cost of repair).
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
FailuresCostsDowntime
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
The number and frequency of asset failures by area of consequence.
•There is no universal standard for this metric because of the diversity of
industries and even plants within industry segments.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
It is however reasonable to expect a downward trend and to set reduction
targets based on current performance levels and business needs.
FailuresCostsDowntime
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Maintenance Costs
Maintenance Cost:
The target maintenance cost depends on the asset and its operating
context.
Total Maintenance Cost / Total Manufacturing Cost:
This metric is a useful benchmark at a plant and corporate level.
•The world class benchmark is <10% to 15%.
Total Maintenance Cost /Total Sales:
This metric is a useful benchmark at a plant and corporate level.
•The world class benchmark is between 6% and 8%.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
FailuresCostsDowntime
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Maintenance Related Downtime
•The maintenance function’s impact on asset availability is through
minimizing downtime attributed to maintenance.
•Useful key performance indicators associated with asset downtime
attributable to maintenance are:
Unscheduled downtime (hours)
Scheduled downtime (hours)
Shutdown overrun (hours)
•It is useful to distinguish between ‘equipment down’ where a specific
piece of equipment is unavailable and ‘process down’ where production
has stopped.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
FailuresCostsDowntime
AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
Reporting and Use of KPI’s
•KPI’s 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 KPI’s 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
Followup.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Role of KPI’s
in Successful Business Organizations
The role of Key Performance Indicators (KPIs) in the organization is to
provide internal and external clients with actionable metrics in easily
accessible, customizable formats they can use to increase the effectiveness
and Efficiency of their operations.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•The effectiveness of KPIs can be directly related to the care with which they
are defined and implemented.
•Critical questions to consider when developing your KPIs include:
How does this measure contribute to the strategic goals?
Is it quantifiable?
Is the data currently available?
Can current performance, benchmarks, and target values be defined?
How will it be used as a management tool?
What is the high level plan for the establishment of reporting?
Is there an outline for how continuous improvement activities will be
implemented?
Has a cascading plan to all levels of the organization been developed?
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Summary of KPI’s
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Benchmark
The objective of both Benchmarking and KPI’s is to assist in the
management of business improvement.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Example of How Maintenance KPI’s Are Used
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
What’s Missing From Your KPI Framework?
We can not solve problems with the same level of thinking that created them.
You cannot get better KPIs and measures with the same approach that
created the ones you currently have.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Some of the thinking that must change before choosing KPI’s:
•Brainstorming KPIs
(rather than deliberately designing them),
•Consulting people
(rather than involving and engaging them),
•Involving too many people, or not enough,
•Seeing measurement as a meeting or workshop
(rather than a step-by-step process),
•Allocating 3 hours to the measurement meeting/workshop
(not allowing time for the most important dialogue most people will
get to have about the organization),
•Assuming people know how to do measurement properly
(it doesn’t come naturally, and many common practices are actually
bad habits).
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Good performance indicators must consider:
•Long term and short term linkage to traditional measures of profitability,
return to capital employed, earnings per share, etc.
•Balance between financial and non financial factors.
•Strategic aims which needs to be translated into critical success factors.
•Efficiency and effectiveness concerning the ratio of outputs relative to
inputs.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Steps to Develop KPIs
•Focuses an organization on aspects of their programs and services critical for
current and future success
•Determine if the organization is headed in the right direction.
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•Involve key constituents,
•Start with the outcomes and mission of the organization,
•Should be created around planning efforts,
•At core, the performance indicator is simple and informative,
•KEY is the important word.
Articulate
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•Input existing data,
•Do a single assessment,
•Include the same question on multiple assessments,
•Other?
Operationalize
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•Use consistent measures,
•Consider timing,
•Sample size requirements,
•Methods: Tracking, Survey, Rubric, …?
Measure
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
•Vary reports by audience,
•Use consistent language (e.g., students),
•Means vs. frequencies vs. counts,
•Weighted averages (data point x respondents)
Report
IntroductionReportingKPISuccessSummaryUtilizationBenchmark
Maintenance KPI

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Maintenance KPI

  • 3. •It is not possible to manage what you cannot control And •You cannot control what you cannot measure IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 4. The measurement of performance is important: • It identifies gaps between current and desired performance, • It indicates of progress towards closing the gaps. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 5. •Carefully selected KPI’s identify precisely where to take action to improve performance. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 6. The purpose of most equipment in manufacturing is to support the production of product destined to downstream customers IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 7. A key principle of performance management is to measure what you can manage. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 8. •When defining a KPI for maintenance a good test of the metric validity is to seek an affirmative response to the questions: 1. If the maintenance function does ‘everything right’, will the suggested metric always reflect a result proportional to the change; 2. or are there other factors, external to maintenance, that could mask the improvement? IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 9. AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures The Asset Reliability Process It is an integral part of a much larger business process responsible for managing the total enterprise. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 10. Business Focus •It focuses the maintenance of physical asset reliability on the business goals of the company. •The potential contribution of the asset base to these goals is evaluated. •The largest contributors are recognized as critical assets and specific performance targets identified. IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 11. Work Identification •Activities identify and control failure modes impacting the equipment‘s performance. •Activities are evaluated to judge if they are worth doing based on the consequences of failure. Performance Analysis •It evaluates maintenance effectiveness. •Gaps between actual process performance and the required performance are identified. •Historical maintenance data compared to current process performance. •Maintenance activity costs are reviewed. •Gaps addressed by revisiting Work Identification function. IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 12. IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures Planning •It develops procedures and work orders for these work activities. Scheduling •It evaluates the availability of all resources required for work "due" in a specified time frame. Execution process •Trained, competent personnel carry out the work. Follow-up process •It responds to information collected in the execution process. •Work order completion comments outline what was done and what was found.
  • 13. Performance Metrics for the Maintenance Function •The Asset Reliability Process represents the collection of ‘all’ tasks required to support the maintenance function. •The process is a supply chain. •If a step in the process is skipped, or performed at a substandard level, the process creates defects known as failures. •The output of a healthy reliability process is optimal asset reliability at optimal cost. IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 14. The elements are: (a) the initial supplier (vendor or plant), (b) a supplier, (c) a manufacturer (production), (d) a customer, and (e) the final customer. •It is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. •Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. Supply Chain IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 15. 1- Asset Reliability Process measures are leading indicators. •They monitor if the tasks are being performed that will ‘lead to results’. •For example a leading process indicator would monitor if the planning function was taking place. 2- Result measures monitor the products of the Asset Reliability Process. They include: •Maintenance cost (as a contributor to total operating cost), •Asset downtime due to planned and unplanned maintenance (as a contributor to availability) and •Number of failures on assets (the measure of reliability: this can then be translated into mean time between failures). IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 16. •Results measures lag. •Failure is a good example. Typically the same piece of equipment doesn’t fail day after day. Take a pump for example. Say the pump fails on average once every 8 months. If we improve its reliability by 50% it will now fail every 12 months. You have to wait at least 12 months to see the improvement. IntroductionReportingKPISuccessSummaryUtilizationBenchmark AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 17. IdentificationPlanningSchedulingExecutionFollowUpAnalysis Reliability Process KPI Leading Measures •The maintenance process is made up of elements. •All elements are required to complete the supply chain. •KPI’s of the maintenance process are process assurance measures. IntroductionReportingKPISuccessSummaryUtilizationBenchmark They answer the question ‘how do I know that this maintenance process element is being performed well?’ AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 18. •The day-to-day execution of maintenance is addressed through the seven elements of the Reliability Process: 1. Business Focus, 2. Work Identification, 3. Work Planning, 4. Work Scheduling, 5. Work Execution, 6. Follow-up, 7. Performance Analysis. IntroductionReportingKPISuccessSummaryUtilizationBenchmark Key performance indicators for each element are recommended. IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 19. Work Identification The function of work identification is to identify the ‘right work at the right time’. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 20. •Initiating a work request is one method of identifying work. •Once a work request is submitted it must be reviewed, validated and approved before it becomes an actual work order ready to be planned. Work Requests IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 21. •A KPI for the work request process is: The percentage of work requests remaining in “Request” status for less than 5 days, over a specified time period (for example the last 30 days). •The world class maintenance expectation is that most work (>80%) requests would be reviewed and validated within a maximum of 5 days. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 22. Proactive Work •The Asset Maintenance Program (AMP) is designed to identify potential failure conditions and known age related failure causes. •The development of the AMP defines the routine maintenance tasks that must be executed to achieve the performance levels required to meet business requirements. IntroductionReportingKPISuccessSummaryUtilizationBenchmark If the AMP is effective, it will successfully identify and address most maintenance preventable causes of failure. IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 23. •A good KPI is: The percentage of available man-hours used for proactive work (AMP + AMP initiated corrective work) over a specified time period. •The world class maintenance target for proactive work is 75 to 80%. IntroductionReportingKPISuccessSummaryUtilizationBenchmark Recognizing that 5 -10% of available man-hours should be attributed to improvement work (non-maintenance) this would leave approximately 10% - 15% reactive work. IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 24. The primary function of the Work Planning element of the maintenance process is to prepare the work to achieve maximum efficiency in execution. Work Planning IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 25. Amount of Planned Work The percentage of all work orders, over a specified time period, with all the planning fields completed (ex. Labor assignments, task durations, work priority, required by date, etc). •The world class expectation is that >95% of all jobs should be planned. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 26. Responsiveness of Planning The percentage of work orders in ‘planning status’ for less than 5 days, over a specified time period. •A world class performance level of at least 80% of all work orders processed in 5 days or less should be possible. IntroductionReportingKPISuccessSummaryUtilizationBenchmark Some work orders will require more time to plan but attention must be paid to 'late finish or required by date'. IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 27. Quality of Planning The accuracy of estimating labor can be measured by: The percentage of work orders with man-hour estimates within 10% of actual over the specified time period. •Estimating accuracy of greater than 90% would be the expected level of world class maintenance performance. The accuracy of estimating material can be measured by: The percentage of planned, scheduled and assigned work orders, where execution is delayed due to the need for materials (spare parts) over the specified time period. •The world class maintenance expectation is that less than 2% of all work assigned will have a material deficiency (due to planning) IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 28. Work Scheduling •The primary function of scheduling is to coordinate the availability of the asset(s) to be maintained with all the required resources, (labor, material and services), creating a schedule. •The schedule is a contract between operations and maintenance. •Work must be executed within the specified time period to achieve the desired level of performance. •Failure to execute within the schedule period will increase the risk of failure. •Weekly maintenance schedule should be produced several days in advance of the beginning of the schedule period. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 29. Quality of Scheduling The percentage of work orders, over the specified time period, that have a scheduled date earlier or equal to the ‘late finish or required by date’. •A world class maintenance target of >95% should be expected in order to ensure the majority of the work orders are completed before their 'late finish or required-by date.' The percentage of work orders assigned “Delay” status due to unavailability of manpower, equipment, space or services over the specified time period. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 30. The percentage of scheduled available man-hours to total available man-hours over the specified time period. •A world class target of >80% of man-hours should be applied to scheduled work. •It is not desirable to schedule 100% of available man-hours within a schedule period, because we recognize that additional work will arise after the schedule has been cast. •This includes both emergency work and other schedule write-ins that must be accommodated during the schedule period. Volume of Scheduled Work IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 31. Work Execution •It begins with the assignment of work to the people responsible for executing it. •It ends when the individuals charged with responsibility for execution provide feedback on the completed work. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 32. Schedule Compliance The percentage of work orders completed during the schedule period before the late finish or required by date. •World class maintenance should achieve >90% schedule compliance during execution. Quality of Work Execution The percentage of rework. •World class levels of maintenance rework are less than 3%. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 33. Work Order Completion •The ability to successfully monitor and manage the process and measure the results of the process is highly dependent on gathering correct information during work execution. •The vehicle for collecting this information is the work order. •A returned work order should indicate: the status of the job (complete, incomplete), the actual labor, material consumed, what was done, what was found and recommendations for additional work. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 34. The percentage of work orders turned in with all the data fields completed. •World class maintenance organizations achieve 95% compliance. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 35. Follow-up •Follow-up tasks include: reviewing work order comments, closing out completed work orders, initiating corrective work and initiating part and procedural updates as required. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 36. Work Order Closure The percentage of work orders closed within a maximum of 3 days, over the specified time period. •The expectation is that >95% of all completed work orders should be reviewed and closed within 3 days. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 37. Performance Analysis •It evaluates maintenance effectiveness by focusing on KPI’s of maintenance results. •Gaps between the actual and required performance of the maintained asset are identified. •Significant performance gaps are addressed by initiating work identification improvement actions to close the performance gap. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 38. Presence of Performance Analysis One indication that performance analysis is being executed is the existence of the maintenance result metrics described (result measures). Quality of Performance Analysis The number of reliability improvement actions initiated through performance analysis during the specified period. •No absolute number is correct but no number suggests inaction. IntroductionReportingKPISuccessSummaryUtilizationBenchmark IdentificationPlanningSchedulingExecutionFollowUpAnalysis AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 39. KPI’s of Maintenance Effectiveness (Result Measures) •The product of maintenance is reliability. •A reliable asset is an asset that functions at the level of performance that satisfies the needs of the user. •Reliability is assessed by measuring failure IntroductionReportingKPISuccessSummaryUtilizationBenchmark FailuresCostsDowntime AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 40. Failures Failure consequences are classified into: 1. Hidden Consequence, 2. Safety Consequence, 3. Environmental Consequence, 4. Operational Consequence, and 5. Non-Operational Consequence (cost of repair). IntroductionReportingKPISuccessSummaryUtilizationBenchmark FailuresCostsDowntime AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 41. The number and frequency of asset failures by area of consequence. •There is no universal standard for this metric because of the diversity of industries and even plants within industry segments. IntroductionReportingKPISuccessSummaryUtilizationBenchmark It is however reasonable to expect a downward trend and to set reduction targets based on current performance levels and business needs. FailuresCostsDowntime AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 42. Maintenance Costs Maintenance Cost: The target maintenance cost depends on the asset and its operating context. Total Maintenance Cost / Total Manufacturing Cost: This metric is a useful benchmark at a plant and corporate level. •The world class benchmark is <10% to 15%. Total Maintenance Cost /Total Sales: This metric is a useful benchmark at a plant and corporate level. •The world class benchmark is between 6% and 8%. IntroductionReportingKPISuccessSummaryUtilizationBenchmark FailuresCostsDowntime AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 43. Maintenance Related Downtime •The maintenance function’s impact on asset availability is through minimizing downtime attributed to maintenance. •Useful key performance indicators associated with asset downtime attributable to maintenance are: Unscheduled downtime (hours) Scheduled downtime (hours) Shutdown overrun (hours) •It is useful to distinguish between ‘equipment down’ where a specific piece of equipment is unavailable and ‘process down’ where production has stopped. IntroductionReportingKPISuccessSummaryUtilizationBenchmark FailuresCostsDowntime AssetReliabilityProcessPerformanceMetricsLeadingMeasuresResultMeasures
  • 44. Reporting and Use of KPI’s •KPI’s 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 KPI’s 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 Followup. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 45. Role of KPI’s in Successful Business Organizations The role of Key Performance Indicators (KPIs) in the organization is to provide internal and external clients with actionable metrics in easily accessible, customizable formats they can use to increase the effectiveness and Efficiency of their operations. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 46. •The effectiveness of KPIs can be directly related to the care with which they are defined and implemented. •Critical questions to consider when developing your KPIs include: How does this measure contribute to the strategic goals? Is it quantifiable? Is the data currently available? Can current performance, benchmarks, and target values be defined? How will it be used as a management tool? What is the high level plan for the establishment of reporting? Is there an outline for how continuous improvement activities will be implemented? Has a cascading plan to all levels of the organization been developed? IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 52. Benchmark The objective of both Benchmarking and KPI’s is to assist in the management of business improvement. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 53. Example of How Maintenance KPI’s Are Used IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 54. What’s Missing From Your KPI Framework? We can not solve problems with the same level of thinking that created them. You cannot get better KPIs and measures with the same approach that created the ones you currently have. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 55. Some of the thinking that must change before choosing KPI’s: •Brainstorming KPIs (rather than deliberately designing them), •Consulting people (rather than involving and engaging them), •Involving too many people, or not enough, •Seeing measurement as a meeting or workshop (rather than a step-by-step process), •Allocating 3 hours to the measurement meeting/workshop (not allowing time for the most important dialogue most people will get to have about the organization), •Assuming people know how to do measurement properly (it doesn’t come naturally, and many common practices are actually bad habits). IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 58. Good performance indicators must consider: •Long term and short term linkage to traditional measures of profitability, return to capital employed, earnings per share, etc. •Balance between financial and non financial factors. •Strategic aims which needs to be translated into critical success factors. •Efficiency and effectiveness concerning the ratio of outputs relative to inputs. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 59. Steps to Develop KPIs •Focuses an organization on aspects of their programs and services critical for current and future success •Determine if the organization is headed in the right direction. IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 60. •Involve key constituents, •Start with the outcomes and mission of the organization, •Should be created around planning efforts, •At core, the performance indicator is simple and informative, •KEY is the important word. Articulate IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 61. •Input existing data, •Do a single assessment, •Include the same question on multiple assessments, •Other? Operationalize IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 62. •Use consistent measures, •Consider timing, •Sample size requirements, •Methods: Tracking, Survey, Rubric, …? Measure IntroductionReportingKPISuccessSummaryUtilizationBenchmark
  • 63. •Vary reports by audience, •Use consistent language (e.g., students), •Means vs. frequencies vs. counts, •Weighted averages (data point x respondents) Report IntroductionReportingKPISuccessSummaryUtilizationBenchmark