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.
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Measuring and Improving MP1.ppt
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.
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)
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
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
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
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.
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.