This document discusses measuring and improving maintenance performance. It introduces structured auditing as a method to evaluate maintenance systems using standardized factors and metrics. Key performance indicators can also be used and classified by input, output, and internal system measures. Benchmarking involves comparing performance to competitors and industry leaders to identify gaps and best practices for improvement. The key is establishing metrics, conducting regular audits and analysis, prioritizing deficiencies, implementing corrective actions, and continually measuring outcomes to drive maintenance performance improvement. Management commitment to continuous improvement is essential to sustaining this process.

1. Measuring and Improving
Maintenance Performance
Salih O. Duffuaa
Systems Engineering Department
King Fahd University of Petroleum and Minerals

2. Presentation Plan
 Introduction
 Evolution of Maintenance Management
 Why Measure
 Performance Measurement
– Structured Auditing
– Key performance indicator
– Benchmarking
 Improvement process
 Case Studies

3. Role of Maintenance
 Maintenance is defined as the
combination of activities by which
equipment, assets or a system is
kept or restored to a state in which
it can perform its designated
function. It is an important factor in
product or service quality and can
be used as a strategy for successful
competition

4. Introduction
PLANNING ORGANIZING
Maintenance
Process
Maintenance strategy
Maintenance Load Forecasting
Maintenance Capacity
Maintenance Organization
Maintenance Scheduling
Process design
Standards
Performance Measurement
Project Management
MONITOR
FEEDBACK
CONTROL
Work control
Material control
Inventory control
Cost control
Managing for quality
INPUT OUTPUT
Operational
Machines
Equipment
&
Facilities
Labor
Equipment
Management
Spares
Variations in
Maintenance
Demand
* Scheduling

5. Maintenance Versus Organization
Objectives
 The objectives and goals of an
organization depends on the organization
state, strategy and type of business. Some
objectives are
– Meet or exceed customer satisfaction
– Maximizing profit, Meet set targets
– Meet set safety standard,
– Zero product defect
 Does Maintenance affect these goals?

6. Evolution of Maintenance
Management
 Prior to 50th: Necessary evil
 50-70 : Preventive maintenance
 70th : Life cycle costing, RCM and
Productive maintenance.
 80 : TPM an RCM
 9oth-date: Strategic view of maintenance

7. Why Measure
 What can be measured will be
understood better.
 What can be measured can be assessed.
 What can be measured can be managed.
 What can be measured can be improved.

8. Measuring Maintenance
Performance
 What to measure?
 How to measure?
 What to do with measurement output?

9. Continuous Improvement
Develop Measurement
System (1)
Evaluate Maintenance
System (2)
Identify most deficient areas (3)
Identify root causes of deficiencies
(4)
Develop and implement corrective
and preventive actions (5)

10. Measurement System
 Structured Audit
 Performance Indicators
 Benchmarking ( can be utilized by both)

11. Structured Audit Approach
 What is an audit
 Standard for the audit ( factors for
audit)
 Organization of the audit
 Expected out put of the audit

12. Structured Audit
 The American Heritage Dictionary defines audit as: “an examination of
records or accounts to check their accuracy”.
 Thomas and Henke (1989), “Auditing is a process in which one person
verifies the assertions of an other”.
 Carmichael et al (1996), defines audit as : “Auditing is an independent
investigation of some particular activity”.
 (http://www.columbia) defines an audit as a formal or official
examination and verification of the activities of an organizational unit,
system, function, or other aspect of the organization's operations. It may
include a review of (1) economy and efficiency of operations; (2)
effectiveness in achieving program results; and (3) compliance with laws,
regulations, and other rules. The audit results in a written report

13. Standard for the Audit
 Factors/activities to be examined.
 Standard for each factor.
 Aggregation of sub-factors and factors.

14. Audit Factors
 1. Strategic Management
 Maintenance mission and objectives
 Alliance of process with mission and
objectives.
 Values
 Performance measurement
 Effective strategies
 Strategy assessment

15. Audit Factors
 2. Organization and staffing
 Organization structure
 Job description
 responsibilities and supervision
 Polices and procedures
 Shops organization
 3. Human resources
 Shop manning
 Employee motivation

16. Audit Factors
 4. Training
 Management training
 Planner training
 Craft training
 5. Management control and budget
 6.1 Budget planning
 Reporting and feedback
 Effective control

17. Audit Factors
 6. Work order planning and scheduling
 Priority system
 Work order system and procedures
 Emergency & shutdown scheduling
 Planning procedures
 7. Facilities and resources
 8. Stores and material
 9. Preventive maintenance and equipment
history
 1o. Engineering Condition monitoring

18. Audit Factors
 11. Information technology
 12. Performance analysis and appraisal
 13. Safety in maintenance
 14. Maintenance and the Environment
 The audit program we are using has 90
questions distributed over the above 14
main factors.

19. Audit Plan and Execution
 Examine the audit program to reflect
plant special characteristics.
 Form audit team from consultant in plant
personnel.
 Regular meeting.
 Corrective and preventive actions.

20. A case of a Process Plant in Saudi
Arabia : Audit Raw Score

Factor
number
Score
(Si)
Idealscore
(Li)
Factor
number
Score
(Si)
IdealScore
(Li)
1
2
3
4
5
6
7
7.00
6.20
6.75
7.33
7.25
8.00
7.14
10
10
10
10
10
10
10
8
9
10
11
12
13
14
9.67
6.70
7.82
7.80
6.00
3.00
8.00
10
10
10
10
10
10
10

21. Factors Weight Using AHP
Factor
number
Normalized
weight
Factor
number
Normalized
weight
1
2
3
4
5
6
7
0.52
0.117
0.078
0.026
0.117
0.104
0.063
8
9
10
11
12
13
14
0.065
0.039
0.065
0.052
0.091
0.052
0.078

22. Audit Analysis
10
Si
Si
=
C.A.I.
Index
Audit
Composite
14
1
14
1
14
1


 



 i
i
i
i
i
i w
I
w
w
PWD
d
d
i
i
i
i
















1
14
100
d wiI w S w I S
i i i i i i i
   
( )

23. ABC on the Table
Factor
number
Percentage
weighted
deviation
Cumulative
percentage
weighted
deviation
Factor
number
Percentage
weighted
deviation
Cumulative
percentage
weighted
deviation
2
13
12
5
3
6
7
0.152
0.125
0.125
0.110
0.087
0.071
0.062
0.152
0.277
0.402
0.512
0.599
0.670
0.732
1
14
10
11
4
8
0.053
0.053
0.048
0.039
0.024
0.008
0.785
0.838
0.886
0.925
0.949
1.00

24. Improvement Actions
 Factor 2: Organization and Staffing
– Document procedures for PM
– Supervisor technician ratio
– Establish a suitable planner-worker ratio.
– Decentralize some of the maintenance activities.
 Factor 13: Safety in maintenance
– Include safety within maintenance process
– Enforce safety rules
– Training program for maintenance personnel.

25. Performance Measures
 An alternative or integrated approach
with structured auditing ?
 It links processes to objectives.

26. Performance Measures
 There are literally hundreds of potential indicators
 “Appropriate” indicators depend on many factors,
such as
– Level in the organization to use the information
– Existing data collection systems, and how easily modified
– Staff availability to develop/maintain systems
– Demands of managers &teams for the information, and their
level of sophistication (foreman vs. MBA)
 Frequency of reporting also is situation dependent
 Stratification options by plant, department, machine,
product line, etc., are important

27. Managerial Classification
 Macro Indicator
– Macro-indicators (for upper management,
primarily)
 Micro Indicator
– Micro-indicators (for lower levels of
management)

28. Macro Indicator
 maintenance expense dollars as a percent
of replacement asset value.
 maintenance expense dollars per unit
produced
 maintenance expense dollars as a percent
of plant controllable expenses
 regulatory compliance indicators
 Productive capacity

29. Micro-Indicator
 maintenance budget compliance (budget
vs. expense)
 monthly expense dollars (by equipment
type)
 percent overtime (3-9% sometimes cited
as ideal)
 percent emergency work

30. System Classification
 Input Measures Primarily Cost Measures
 Output measures
 Within The System Measures

31. Input Measures
 Input Measures are Mostly Related To
Cost
 Labor : Cost of trades, semi-skilled etc
 Materials and spares
 Contracts
 Shop Service
 Equipment Rentals
 Maintenance Overhead
 Company Overhead

32. Output Measures
 Availability : Measure of Uptime
 Reliability : Mean-time-between-failure
 MTBF = S-d/f , f is number of failures
 Mean Time To Repair: Measure of
Duration of Repair
 MTTR = d/f
 Utilization = Scheduled Time/C T
 CT = Calendar Time

33. Output Measures
 Process Rate (PR) : Measure of the Equipment
Cycle Time in The Process
 PR = Ideal Cycle Time/Actual Cycle time
 Quality Rate (QR) : Measure of equipment
Precision
 Total Produced - Rejected/Downgrades/ Total
 Overall equipment Effectiveness
 OEE = A* PR *QR
 Productive capacity
 OEE * Utlization

34. Measures Within The System
 Work Distribution : Time Spent in each work
category
 Delays : Time spent waiting for instructions
 parts, travel,breaks, Start and Quits
 Compliance : Measures to Track Compliance
with various plans, such as PM, Shutdown
schedules etc.

35. Measures Within The System
 Backlog : Amount of Work Planned but
not Completed by Plant, Area, Craft, etc
 Failure Analysis: Tracks improvement
analysis, such Number of New PM
Routines, Number of Root Cause
Analysis of Breakdowns Undertaken.

36. Indicators Selection Criteria
 Reflect business objectives.
 Impact customer satisfaction.
 Quality of product or service
 Describe the performance of key process.
 Performance of critical equipment.
 Safety and environment.

37. Balance Scorecard Approach
 Financial
 Customer
 Internal
 Learning and growth

38. Improvement Approach
 Identify areas were goals are not met
 Use Pareto chart to prioritize areas
 Root cause analysis
 Corrective and preventive actions
 Implement actions
 Measure and check

39. Benchmarking
 Formal Definition
Benchmarking is the continuous, systematic
process of measuring our products, services, and
practices against the toughest competitors or those
companies recognized as industry leaders.
Working Definition
Benchmarking is a basis of establishing rational
performance goals through the search for best
industry practices that will lead to superior
performance.
A Related Definition
Benchmark: An industry standard
 Descriptive Benchmarks or Practices
 Quantitative Benchmarks or Performance
Measurements

40. Benchmarking As An Improvement
Tool
 How Benchmarking Makes Possible
Improvements
 The gap between internal and external
practices creates the need for
improvement
 Understanding industry best practices
identifies what you must improve.
 Externally benchmarked practices
developed from others give a picture of
the endpoint after improvement.

41. Types of Benchmarking
 Internal
– Similar processes (data is available).
 External
– Type of industry (competitors)
– Best in industry (non-competitors)

42. Benchmarking Process

BENCHMARKING PROCESS
BENCHMARK METRICS BENCHMARK PRACTICES
BENCHMARK GAP
 HOW MUCH
 WHERE
 WHEN
HOW TO CLOSE THE GAP
 IMPROVED KNOWLEDGE
 IMPROVE PRACTICES
 IMPROVED PROCESSES
MANAGEMENT
COMMITMENT
ORGANIZATION
COMMUNICATION
EMPLOYEE
PARTICIPATION
SUPERIOR
PERFORMANCE

43. Benchmarking as a Process of
Improvement
 Know your own operation, both its strengths and
weaknesses.
 Know those industries that excel at the
maintenance processes used in your operation,
including competitors, sector leaders, and those
in other industries
 Set challenging targets for your maintenance
performance measures; incorporate the best
practices
 Measure results and strive continually for
superior performance

44. Key Factors for Success
 Management commitment for
improvement.
 Create a culture of Maintenance
Kaizen.
 People motivation, growth and
continuous learning.
 Quality circle for process improvement
 Reward based performance.
 Technology as a means for enabling.

45. Conclusion
 Maintenance Should managed as a
business unit.
 Maintenance performance must be
aligned with company strategic
directions.
 Three approached for improvement are
presented- Structured audits,
Performance Indicators and
Benchmarking.

46. Conclusion
 Culture of continuous improvement
(C.I) must be created to sustain C. I.
 Leadership and management
commitment are key to creating the
culture of C.I.

47. Thank you for your patience
Any Questions or comments.