This document discusses the "Maintenance Cost as a % of Replacement of Asset Value (RAV)" metric, which measures annual maintenance costs divided by the Replacement Asset Value of maintained assets, expressed as a percentage. This allows comparisons between facilities of different sizes and values, as well as benchmarks. The RAV is used to normalize measurements as plant values and sizes vary. There is more understanding required before using this metric, and purchasing additional information from SMRP is recommended.

1. SMRP Lagging KPI “Maintenance Cost as a % of Replacement of Asset Value (RAV)”
The metric is the amount of money spent annually maintaining assets,
divided by the Replacement Asset Value (RAV) of the assets being
maintained, expressed as a percentage.
• This metric allows comparisons of the expenditures for maintenance
with other plants of varying size and value, as well as to
benchmarks.
• The RAV is used in the denominator to normalize the measurement
given that plants vary in size and value.
• There is a lot more one needs to understand before using this metric
in your organization. It is recommended you purchase this SMRP
Metric before moving forward with its use.
To view and/or purchase the SMRP Metrics go to: http://library.smrp.org/ind_metrics
“The SMRP Metrics is the best collection of validated maintenance and reliability metrics in the world”
‒ Ricky Smith CMRP