Mining Equipment Maintenance & Repair Processes

METRICS (KPI’S) TO ASSESS PROCESS PERFORMANCE

Abelardo A. Flores James W. McCaherty
Revision #03 – March 27, 2007
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Introduction
The primary goal and responsibility of the Maintenance Department is to maintain equipment in optimum condition via problem / failure avoidance. One of the key tools of the Maintenance Department is performance measurement. In order to be effective, performance measurements should give us not only an accurate picture of how we are performing relative to established targets and/or global benchmarks but also provide us with a prediction or projection as to what we can expect in terms of future performance. In spite of the fact that it is human nature to want to report good news, the most valuable performance measures assist us in the identification of weak areas, poor practices and other opportunities for improvement. Therefore, it behooves us to take a critical look at our performance via an honest assessment of that performance. Only in this way are we able to correct small issues before they become major problems. The collection of performance measures included in this document help us to identify and understand on-site performance issues related to project health and maintenance / repair process performance in support of that project. In doing so we are also able to gain some insight into related issues such as application severity, operating practices, contract guarantees / commitments, and contract financial health. “Performance Metric” is a term used to describe the outcome of any process used to collect, analyze, interpret and present quantitative data. It is a measurement parameter that enables performance against some pre-defined Target or Benchmark to be monitored … a measurement used to gauge performance of a function, operation or business relative to past results and projected future behavior. “Benchmark” is another term frequently used to describe performance. Benchmark is defined as a world-class performance standard relative to a specific performance metric. A Benchmark represents and quantifies "world-class performance or best practice" of an operation or of specific functions within that operation according to a specified performance metric. A benchmark is determined by and represents actual, documented, sustainable performance over time relative to some performance metric.

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Caterpillar has invested a great deal of time, energy and resources identifying and developing several metrics of performance that quantify and trend product and project health. Based on that experience we have been able to document actual site performance in many of those areas and feel very confident representing some of those results as Benchmarks. Unfortunately, the overwhelming majority of that effort has been concentrated on fleets of large Off Highway Trucks. Therefore, most of the Benchmarks used in this document are specific to those fleets. When we have felt comfortable in doing so, we have also cited our best estimates of what those Benchmarks might be for other mining equipment if we had access to a significant sample of data for those machines. In situations where we do not have that same level of confidence, we have made that clear as we do not care to mislead the user by speculating. The metrics contained herein will provide insight into the performance of the individual Maintenance & Repair Processes and their contributions to the end results. Those metrics are organized as follows:

1. - Fleet Performance Metrics 2. - Maintenance & Repair Processes Metrics 2.1 - Preventive Maintenance 2.2 - Condition Monitoring 2.3 - Backlog Management 2.4 - Planning and Scheduling 2.5 - Parts Management 2.6 - Repair Management 2.7 - Component Management 2.8 - Human Resources - Training 2.9 - Continuous Improvement

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1.1 Fleet Performance Metrics
The following measures are “Top Tier” performance metrics or Key Performance Indicators (KPI’s) that enable management to quantify, assess and monitor product health and site performance.

1.1.1 - Mean Time Between Shutdowns (MTBS)
Definition: The average operating time between machine stoppages … a function of the average frequency of equipment downtime events, expressed in hours. Calculation Methodology:

MTBS =
Description:

Operating Hours Number of Shutdowns

(hours)

MTBS is a measure that combines the effects of inherent machine reliability and the effectiveness of the equipment management organization in its ability to influence results through problem avoidance. Data Source(s): Operating hours obtained from machine service meter reading. Note, hours obtained from dispatch systems frequently do not agree with machine SMU due to coding of production delays, etc. Note that hours taken from machine SMU will be higher than those taken from dispatch, oftentimes by as much as 10 percent. Note: Production delay hours may not be tracked and accounted for separately and are therefore included in the total operating hours. Sites that use dispatch systems may track and code production delay hours separate from operating hours hence they must be acquired from dispatch. Shutdown count obtained from machine workorder history and dispatch system. Dispatch information must be used to account for shutdown events that are not accompanied by a workorder.
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Equipment Mgmt. benchmarks for other large mining equipment are not well documented. that of a “mature” fleet (one that has undergone its first round of major component rebuilds) is 60 hours. Fair. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . All Rights Reserved. best-inclass performance sustainable over time. Marginal. organization is highly proactive. we are frequently asked to assess performance through a range of results. The following table represents our best judgment in this area. Acceptable. The benchmark for a fleet of new trucks is 80 hours.Benchmarks & Targets: MTBS benchmarks vary significantly by machine model. indications are that once MTBS data is collected. analyzed and validated. MTBS 50 to 60 hours 40 to 50 hours 30 to 40 hours 20 to 30 hours < 20 hours Assessment / Characteristics Excellent. Table 1: Site performance through range of MTBS Benchmarks for trucks smaller than the 785 and the 797 are less well known although it is believed that MTBS for trucks in the 769 – 777 size class will be significantly higher (as much 30 to 40%) while that of the 797 will be perhaps 10% lower. their relative size. minimal effort on Equipment Mgmt. high % of scheduled downtime. Equipment Mgmt. Proprietary Material of Caterpillar Inc. only PM’s are scheduled. However. MTBS for large Off Highway Trucks in the 785 – 793 size class is very well documented. Equipment Mgmt. majority of downtime is scheduled. disciplines not fully functional. Similarly. organization is purely reactive. substantial emphasis on Equipment Mgmt. the results will fall into the following ranges: Machine / Model D10 / D11 TTT’s 992 / 994 WL’s 16 MG 24 MG 5000 HEX MTBS 55 to 75 hours 55 to 75 hours 95 to 105 hours 55 to 75 hours 55 to 75 hours Table 2: MTBS guidelines for mining machines Caterpillar Confidential Yellow Copyright 2007 Caterpillar. half of all downtime is scheduled. < 40% downtime is scheduled. Poor. Since by definition these benchmarks represent documented. approx. age and design “maturity” and complexity.

their relative size and design complexity but to a much lesser extent than MTBS. expressed in hours. machine age is the primary driver of MTTR. It is essential to note that repair delay time should be included in the downtime history calculation.e. dispatch information must be used to account for shutdown events that are not accompanied by a workorder. If delay times are known. i. MTTR for new trucks should Caterpillar Confidential Yellow Copyright 2007 Caterpillar. All Rights Reserved. MTTR for large Off Highway Trucks in the 785 – 793 size class is very well documented. Once again. Dispatch information must be used to account for downtime that is not accompanied by a workorder. MTTR combines the effects of inherent machine maintainability / serviceability and the efficiency of the equipment management organization in delivering rapid remedial action in the execution of needed repairs. Shutdown count obtained from machine workorder history and dispatch system. MTTR should be calculated both with and without delays. Calculation Methodology: MTTR = Description: Total Downtime Hours Number of Shutdowns (hours) Mean Time To Repair (MTTR) is a performance measure that quantifies repair turnaround time. Benchmarks & Targets: MTTR benchmarks vary somewhat by machine model.Mean Time To Repair (MTTR) Definition: The average downtime for machine stoppages … the average duration of equipment downtime events. The benchmark for a fleet of trucks in the 785 – 793 size class is 3 to 6 hours. Proprietary Material of Caterpillar Inc.2 . how quickly (or slowly) a machine is returned to service once a downtime incident occurs.1.1. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . Data Source(s): Downtime hours obtained from machine workorder history and dispatch system.

Percentage Scheduled Downtime Definition: The percentage of total downtime hours performed in a given period that have been planned and scheduled. 1. Calculation Methodology: % Scheduled Downtime = Description: Scheduled Downtime Hours Total Downtime Hours X 100 (%) A high percentage of unscheduled downtime incidents results in very inefficient use of resources and excessive costs since personnel are frequently shuffled from job to job and facilities and manpower requirements need to be sufficiently large to accommodate huge swings in the number of machines down for repairs. Benchmarks for trucks smaller than the 785 and the 797 are less well known although it is believed that MTTR for trucks in the 769 – 777 size class will be slightly lower (10 to 20%) while that of the 797 will be perhaps 10% higher. 24H MG and 5000 series HEX. the results will fall into much the same range as large OHT fleets with larger machines. being as much as 30 to 40% higher. e. This is a result of the relative complexity of the repairs seen on new versus “mature” machines.be close to the low end of the range while that of a “mature” fleet (one that has undergone its first round of major component rebuilds) should be closer to the high end of the range.g. Proprietary Material of Caterpillar Inc.1. Similarly. benchmarks for other large mining equipment are not well documented. analyzed and validated. indications are that once MTTR data is collected. Data collected from mine studies has shown that the average downtime for unplanned / unscheduled work is up to eight times greater than the downtime for planned / scheduled activity. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . Caterpillar Confidential Yellow Copyright 2007 Caterpillar. All Rights Reserved. However.3 .

Dispatch information must be used to account for downtime that is not accompanied by a workorder.Data Source(s): Downtime hours obtained from machine workorder history and dispatch system. The calculation of available hours is not a pure calculation since the result is amended by downtime hours that are specifically excluded or limited by the terms of the contract. Mines with highly effective equipment management processes in place are able to execute 80% of its maintenance and repair downtime activity on a scheduled basis. 1. We believe that this criterion holds true for other mining equipment as well however requirements for less utilized. Individual workorders should be coded as “scheduled” or “unscheduled in order to track the number of downtime hours that are scheduled. It is essential to note that repair delay time should be included in the downtime history calculation.1. Proprietary Material of Caterpillar Inc. expressed as a percentage.Contractual Availability Definition: The ratio of time that a machine is capable of functioning in the intended operation (available hours) to total hours in the period under consideration (typically either based on calendar or scheduled hours). Caterpillar Confidential Yellow Copyright 2007 Caterpillar. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .MARC Downtime Hours Contractual Availability = Total Hours * X 100 (%) *NOTE: “Total Hours” are typically either based on calendar or scheduled hours depending upon the calculation methodology defined in the agreement or customer expectations. Benchmarks & Targets: % Scheduled Downtime Hours for large Off Highway Trucks in the 785 – 793 size class is very well documented. Calculation Methodology: Total Hours * . All Rights Reserved. non-production equipment may be somewhat less.4 .

tires. Benchmarks & Targets: There is no Benchmark that is applicable to the Contractual Availability performance metric. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .e. are defined in detail in the contract. time that the contractor will be held accountable for (contractual downtime). in the absence of a contract. that information can be obtained from the machine service meter reading and information coded within the dispatch system. stand-by hours.g. production delay hours and operational delay hours (as it does in many instances). Target performance should be compliance with the provisions defined within the contract or. e. Target performance should be compliance with the Caterpillar Confidential Yellow Copyright 2007 Caterpillar. predetermined operating cost. contracts frequently specify caps or limits on downtime that apply to things such as delays waiting on facilities. 168 hours / week. 8760 hours / year.Description: Contracts are written largely to ensure that production equipment is available for operation a sufficient number of hours to enable the mine to meet its production goals at a reasonable. with customer expectations. etc.g. e. welding. i. dump bodies. it is not possible to link performance in this area to any kind of Benchmark nor does it make any sense to attempt to make comparisons from one site to the next. If the available hours calculation involves the combination of operating hours. It is essential that the machine repair history contain detail sufficient to determine if individual downtime events are excluded from the MARC downtime calculation. 720 hours / 30 day month. Proprietary Material of Caterpillar Inc. Furthermore. All Rights Reserved. Dispatch information must be used to account for downtime that is not accompanied by a workorder. Data Source(s): Total calendar hours is equal to the total time in the period to be analyzed. repair equipment and or other support infrastructure that the contractor is not expected to provide and has little control over. time that the contractor will be given credit for (available hours). as well as specific exclusions. Because these exclusions and limitations vary so widely from one site to the next. etc. MARC downtime hours are obtained from the machine workorder history as well as the dispatch system. The specific provisions of a contractual availability guarantee vary significantly from site to site.

their relative size. Calculation Methodology: Availability Index = Description: MTBS MTBS + MTTR X 100 (%) Availability is the result of the frequency and duration of downtime events (shutdowns). Benchmarks & Targets: Availability Index benchmarks vary significantly by machine model. age and design “maturity” and complexity. Because of the mathematical relationship between MTBS.provisions defined within the contract or. Proprietary Material of Caterpillar Inc. Data Source(s): Since Availability Index is derived from MTBS and MTTR.Availability Index Definition: The ratio of MTBS (average shutdown frequency) to the sum of MTBS and MTTR (average shutdown duration). The benchmark for a fleet of new trucks 92%.5 . that of a “mature” fleet (one that has undergone its first round of major component rebuilds) is 88%. 1. All Rights Reserved. Benchmarks for truck smaller than the 785 and the 797 are less well known although it is believed that the Availability Index for trucks in the 769 – 777 Caterpillar Confidential Yellow Copyright 2007 Caterpillar. MTTR and Availability Index. the result shows which of the other two factors had the greatest influence upon that result. with customer expectations. Availability Index for large Off Highway Trucks in the 785 – 793 size class is very well documented.1. in the absence of a contract. the data sources for those two metrics are applicable here as well. This allows management to react appropriately to changes in the Availability Index and by focusing its effort and resources on the frequency (MTBS) or duration (MTTR) of downtime events. expressed as a percentage. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .

e.g. Repair shop. etc.1. decision making.Maintenance Ratio Definition: Maintenance Ratio is a dimensionless ratio of maintenance and repair man-hours to machine operating hours. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. repair support equipment. However. supervision and idle time. 1. analyzed and validated. All Rights Reserved. the results will fall into much the same range as large OHT fleets with larger machines.6 . parts. Calculation Methodology: Maintenance Ratio charged = Description: Maintenance & Repair Man-Hours Operating Hours Maintenance Ratio is an indication of the amount of effort required to keep equipment in service as well as the efficiency with which labor is deployed and the effectiveness of the workforce in carrying out its duties.size class will be somewhat higher (possibly 2 to 3%) while that of the 797 will be perhaps 1 to 2% lower.g. 24H MG and 5000 series HEX. “Overall” Maintenance Ratio includes all the elements of “charged” Maintenance Ratio plus staff. being as much as 3 to 4% lower and smaller machines. 16H. tooling. Similarly. e. e.g. The result should include actual time spent working on all forms of maintenance. being 1 or 2% higher. Maintenance Ratio can be calculated as either “charged” or “direct”. Proprietary Material of Caterpillar Inc. benchmarks for other large mining equipment are not well documented. Component Rebuild Center. “Charged” Maintenance Ratio considers only workorder man-hours (direct labor). Data Source(s): Maintenance and repair man-hours are obtained from the work order history. literature. labor is not included in the calculation. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . repairs and modifications as well as inefficiencies that result from inspection and diagnostic time or any delay or wait time for bay space. indications are that once the data is collected.

organization is purely reactive. Equipment Mgmt. age and design “maturity” and complexity.hours/ operating hour. Equipment Mgmt. Similarly. best-inclass performance sustainable over time. etc. their relative size. disciplines not fully functional. analyzed and validated.30 man.35 to 0. Fair.60 Assessment / Characteristics Excellent.60 > 0. Since by definition these benchmarks represent documented. approx. All Rights Reserved. It is important to note here that machine application will play a role in Maintenance Ratio. indications are that once Maintenance Ratio data is collected. benchmarks for other large mining equipment are not well documented. organization is highly proactive.35 0. < 40% downtime is scheduled. Maintenance Ratio for large Off Highway Trucks in the 785 – 793 size class is very well documented. the results will fall into the ranges shown in the table below.50 to 0. Proprietary Material of Caterpillar Inc. (Refer to table 4 below). Note.50 0. majority of downtime is scheduled. we are frequently asked to assess performance through a range of results.30 to 0. Marginal. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . hours obtained from dispatch systems frequently do not agree with machine SMR due to coding of production delays. only PM’s are scheduled. Acceptable. Benchmarks & Targets: Maintenance Ratio benchmarks vary significantly by machine model. MR 0. The benchmark for a fleet of new trucks is 0. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Equipment Mgmt. high % of scheduled downtime. half of all downtime is scheduled.40 to 0.20 man-hours/ operating hour. that of a “mature” fleet (one that has undergone its first round of major component rebuilds) is 0. Table 3: Site performance through range of Maintenance Ratios Benchmarks for trucks smaller than the 785 and the 797 are less well known although it is believed that Maintenance Ratio for trucks in the 769 – 777 size class will be slightly lower while that of the 797 will be somewhat higher.40 0. Poor. This is particularly true in the case of large Track-type Tractors that can be deployed as either production or support equipment. minimal effort on Equipment Mgmt. The following (table 3) represents our best judgment in this area. However.Operating hours are obtained from machine service meter reading and once again should include production delay hours. substantial emphasis on Equipment Mgmt.

45 0. All Rights Reserved. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .40 to 0.15 0.7 .Machine / Model D10 / D11 TTT’s 992 / 994 WL’s 16 MG 24 MG 5000 HEX MR 0. MTTR. Proprietary Material of Caterpillar Inc.50 to 0. impact on Availability and Costs.10 to 0.15 to 0.20 0.35 to 0.60 Table 4: Maintenance Ratio guidelines for mining machines 1.Top Problems Summary Definition: The distribution of problems affecting a fleet of equipment ranked in terms of MTBS.50 0.1. Calculation Methodology: MTBS (by system) = Operating Hours Number of Shutdowns (by system) (hours) MTTR (by system) = Downtime Hours (by system) Number of Shutdowns (by system) (hours) Impact on Availability (by system) = (1 – Availability (total machine) )X Downtime Hours (by system) Total Downtime Hours (machine) (%) Cost per Hour (by system) = Cost (by system) Operating Hours (US & / hour) Caterpillar Confidential Yellow Copyright 2007 Caterpillar.

Dispatch information must be used to account for shutdown events that are not accounted for by a workorder.Description: All mining support operations have limited resources. shutdown frequency (MTBS). shutdown duration (MTTR). transmission. As is the case with shutdown count. MTTR should be calculated both with and without delays. The most successful operations are those that have a clear understanding of the problems and issues facing them and are thus in a position to establish priorities in order to focus their efforts and allocate the appropriate resources on remedial or containment strategies through continuous improvement. Downtime hours obtained from machine workorder history and dispatch system. PM) facilitates the understanding of the extent that each area is having an influence on various criteria that comprise the success of a mining support operation. i. engine. …). Shutdown count must be determined individually for each area of the machine as well as for the machine as a whole in order to assess not only the contribution of each area but also to calculate Availability Index. electrical. If delay times are known. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .g. impact on Availability and Costs. At a minimum it is vital to know the breakdown for costs of repairs and rebuilds of each major component on the machine. The identification and quantification of top problems by component (e. Note. Dispatch information must be used to account for downtime that is not accompanied by a workorder. It is essential to note that repair delay times should be included in the downtime history calculation.g. Data Source(s): Operating hours are obtained from machine service meter reading. system (e.e. hydraulics. Shutdown count is obtained from machine workorder history and dispatch system. Most recordskeeping systems we have studied do a fairly poor job of Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Proprietary Material of Caterpillar Inc. etc. With this knowledge the Project Manager is able to “drill down” to the key issues facing his site and apply the necessary resources in the most efficient manner to improve his situation. hours obtained from dispatch systems frequently do not agree with machine SMR due to coding of production delays. Total cost to support and maintain each of the systems and components on the machine. …) or even process (e. downtime must be determined individually for each area of the machine as well as the machine as a whole in order to assess the contribution of each area.g. All Rights Reserved.

Caterpillar Confidential Yellow Copyright 2007 Caterpillar. All Rights Reserved.8 . However.1. taxes. This being the case. it is impossible to define Benchmarks that are universally applicable to any given machine model. Since there are many factors other than equipment management that influence costs (labor rates. transportation costs. we recommend that budgetary cost and component life projections be used to define target cost per hour figures and that actual cost performance be compared to those targets in order to determine if any particular area is out of line with expectations. over the course of investigation during EMR’s we developed a collection of generic reference guidelines for large Off Highway Trucks in the 785 – 793 size class that can be used as a gauge to evaluate MTBS. The “Generic Pareto Reference – Large Off Highway Trucks” included in the Appendix can be used as a baseline until Project Management has sufficient individual site-specific experience and history to determine how this reference can be modified to fit the application in question. This reference defines what we believe to be a reasonable level of acceptability for frequency of downtime events (MTBS). 1. generic since actual results achieved at any given mine are site-specific because results of this kind are a function of not only application severity but also of the operating environment. MTTR and impact on Availability. Benchmarks & Targets: There is no set of Benchmarks that is applicable to this metric.documenting costs but if Project Management is to have any opportunity to manage contract profitability.Asset Utilization Definition: The proportion of time that a machine is operating (operating hours) divided by the total calendar time in the period. of course. expressed as a percentage. The data is representative of a site operating at an Availability Index of approximately 90% and is. Proprietary Material of Caterpillar Inc. the maintenance the equipment receives and product design shortcomings that are particular to machines either by model or within a given range of serial numbers. etc.). import duties. duration of downtime events (MTTR) and impact on Availability for each of the major areas on the machine. costs must be known. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .

Total calendar hours is equal to the total time in the period to be analyzed. 8760 hours / year. If machines are scheduled for use 24 hours a day. over 7800 operating hours per year. We believe that this Benchmark is valid for other production mining equipment however the Benchmark for less utilized. etc. Data Source(s): Operating hours are obtained from machine service meter reading and should include production delay hours. Note that hours taken from machine SMU will be higher than those taken from dispatch. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . 720 hours / 30 day month. hours obtained from dispatch systems frequently do not agree with machine SMU due to coding of production delays. e. may be significantly less. etc. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Mines with highly effective equipment management processes in place are able to achieve Asset Utilization of 90%. All Rights Reserved. Note. good machine reliability and the lowest possible cost per unit of production. lunch breaks or during operational delays such as during blasting or fueling of equipment. oftentimes by as much as 10 percent. non-production equipment. These opportunities typically occur during scheduled shutdowns but they may also come at shift change. Proprietary Material of Caterpillar Inc. Benchmarks & Targets: Asset Utilization for large Off Highway Trucks in the 785 – 793 size class is very well documented.Calculation Methodology: Asset Utilization = Description: Operating Hours Total Calendar Hours X 100 (%) How effectively the Operations Department schedules equipment and efficiently it utilizes that equipment has significant implications for Maintenance. Maintenance must respond by working with Operations to find windows of opportunity in which maintenance and repairs can be performed without increasing downtime. 168 hours / week. Operations and Maintenance need to recognize that they are working together toward common goals … high availability.g. In all circumstances. although unknown. 7 days a week.

compliance with this discipline is viewed as critical to the success of a project and common sense would dictate that a higher percentage of completion of outstanding programs is desirable. Calculation Methodology: Factory program completion status is calculated as the ratio of programs completed on a machine-by-machine basis relative to the number of programs that are active and applicable at the time under consideration.PIP / PSP Completion Rate Definition: A tracking tool used to monitor the status of implementation of factory programs. However. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . dates of issue and termination. Programs that are defined as "after failure" should not be included in the calculation. i.1 Preventive Maintenance The following metrics are indicators of the performance and / or contributions of the Preventive Maintenance process to the end results of the project.1. Data Source(s): Factory programs are received on site via the dealer Technical Communications staff and include all of the information necessary to determine applicability and monitor their completion status.1.9 .e. Proprietary Material of Caterpillar Inc. no program should be permitted to run beyond its termination date without being addressed unless it is an after failure only program. All Rights Reserved. Machine serial number and hourmeter information obtained from the machine history at the site. Clearly. Benchmarks & Targets: Since factors such as parts availability can impact on management's ability to complete a program and in some cases program execution can be delayed to coincide with other related work (which may be a valid decision on the part of management). This ratio should be expressed as a percentage.e. i. there is no Benchmark that is applicable to this metric. equipment reliability and availability. 2. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. and program type. program identification number.

Tracking and trending this metric monthly offers a reasonable representation of PM quality and effectiveness.1. 2.1.3 .Availability) X PM Downtime Hours Total Downtime Hours X 100 (%) Unavailability due to Preventive Maintenance quantifies the impact of PM on availability. There is no Benchmark associated with this metric but a reasonably valid target is in the range of 2.2. it is a safe assumption that insufficient time and effort is being placed on PM. There is no Benchmark associated with this measure but a reasonable target is in the 7. The result of this measure should be taken in context with MTBS after PM.5 hour range for large Off Highway Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Conversely.Unavailability PM Unavailability PM = (1 .MTBS after PM MTBS after PM = Total Operating Hours to First Stop Number of PM Services (hours) The average operating hours to the first stop after each PM service is a valid indication of PM quality and effectiveness. All Rights Reserved. if unavailability due to PM is above the range and MTBS after PM is high.MTTR PM MTTR PM = Total PM Downtime Hours Number of PM Services (hours) The average downtime hours dedicated to PM is an indication of PM efficiency.75 to 8. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .2 . If unavailability due to PM is below the range and MTBS after PM is low. 2. Proprietary Material of Caterpillar Inc.75 to 3.25% for large Off Highway Trucks in the 785 – 793 size class.1 . a realistic target is 2 to 3 times the overall MTBS.1. The Benchmark (best in class) for large Off Highway Trucks is 105 hours. one can assume that the site is placing substantial emphasis on the value of PM.

no Benchmarks or targets are applicable. if average PM downtime is the range.1. All Rights Reserved. tooling. one can assume that the site is placing substantial emphasis on the value of PM. it is a safe assumption that insufficient time and effort is being placed on PM. double that of the 250 hour interval. 2.A. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . The Benchmark for S. Once again. 2.1.5 . training. The calculation is based upon past performance and assumes that PM intervals are normally distributed about the mean. There is no Benchmark or target for this measure. Conversely.25 hours of target interval). Additionally.e. when assessing MTTR PM.Service Accuracy A measurement of Preventive Maintenance execution timeliness based on a statistical calculation that predicts the probability that the next PM service will occur within the recommended range (+/. The target for equipment that is on a 500 hour PM service interval is higher. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. etc. if average PM downtime is above the range and MTBS after PM is high.1. i. 2. planning & scheduling.Trucks that are on a 250 hour PM service interval.Backlogs generated during PM The number of defects identified and entered into the Backlog Management system during the execution of Preventive Maintenance. Since this measure is a direct function of the number of machines being monitored as well as their condition. is 95% but an aggressive target that will yield excellent results is 90%.4 .6 . Backlogs generated during PM quantifies the use of the “window of opportunity” presented during the PM shutdown for defect detection (an element of Condition Monitoring). one should consider the impact of efficiency factors such as facilities. it may indicate and MTBS after PM is low. Proprietary Material of Caterpillar Inc.Backlogs executed during PM Backlogs executed during Preventive Maintenance is a good indication of how well the organization is using the “window of opportunity” presented by PM to maintain the equipment at a standard that will enhance product reliably.

Mean Time Between Failures (MTBF) MTBF (Mean Time Between Failures) = Operating Hours Number of Failures (hours) The average operating time between equipment failures. expressed in hours. There is no Benchmark associated with this metric but a reasonably valid target is < 2% for large Off Highway Trucks in the 785 – 793 size class. Proprietary Material of Caterpillar Inc.1 . i. equipment management ineffectiveness in the area of problem avoidance. We have not established a Benchmark for MTBF and do not have sufficient confidence at this time to provide a reasonable target. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . If unavailability due to unscheduled downtime is significantly higher than 2%.2.2 Condition Monitoring The following metrics are indicators of the performance and / or contributions of the Condition Monitoring process to the end results of the project. the inverse of failure frequency.Unavailability Unscheduled Unavailability U/S = (1 – Availability) X Unscheduled Downtime Total Downtime X 100 (%) Unavailability due to unscheduled downtime quantifies the impact of unscheduled events on availability. All Rights Reserved. Planning & Scheduling and/or repair execution areas will be necessary. Failures may be the result of technical product issues.2 .2. (Please see the Glossary for our definition of equipment Failure. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. it is reasonable to assume that gaps exist in the detect-plan-execute cycle therefore improvements to the Condition Monitoring.) 2. or due to maintenance / repair neglect. i.e. 2.2. Increasing unavailability due to unscheduled downtime is a valid predictor of pending problems and may very well predict future shortages of manpower and facilities.e. equipment unreliability.

5 . Failure Reduction should be the primary focus of Condition Monitoring activities. 2.2. Since unscheduled events are inherently more difficult and inefficient to deal with in terms of the time required to make unscheduled (unplanned) repairs. before-failure repairs) must be greater than the cost of implementation and execution of the Condition Monitoring program.2. the total savings generated by Condition Monitoring (cost of after-failure repairs – cost of preventive.3 . the result should be positive indicating a decline in the percentage of unscheduled downtime. Proprietary Material of Caterpillar Inc. There is no Benchmark for this metric but the target should be a positive value (net savings as a result of Condition Monitoring).Total Backlogs Generated Backlogs Generated = Total Backlogs Generated in the Period (Total) The number of defects identified and entered into the Backlog Management system during a specified period (typically one month). The material contained herein is confidential and is not to be copied or distributed without written permission by owner . In other words.Failure Reduction Failure Reduction (FR) Unscheduled hours (6 months RA) _ Unscheduled hours (last month) = Unscheduled hours (6 month rolling average) X 100 (%) Failure Reduction is a means of quantifying the impact of Condition Monitoring in its efforts toward failure / problem avoidance. In any event.4 . This metric assesses the Condition Monitoring effort in and ability to successfully detect potential problems before failure.2. Since this measure is Caterpillar Confidential Yellow Copyright 2007 Caterpillar. All Rights Reserved.Condition Monitoring Total Savings CM Total Savings = CM Cost Saving – CM Program Cost (US$ ) Condition Monitoring Total Savings defines the “Value Proposition” for Condition Monitoring.2. 2. Because the opportunity to improve in this area is highly dependent upon the amount of unscheduled downtime taking place at the site. there is no Benchmark or target for Failure Reduction.

if all issues on the problem list are not producing Backlogs. the PM crew. the shop crew. Conversely. 2.2. There is no Benchmark for Backlogs Generated by Origin. The result yields the % of Condition Monitoring actions that are “On Target” relative to the key issues affecting site performance. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . Proprietary Material of Caterpillar Inc.6 . etc is low. if the quantity of Backlogs generated by operators.Working on Target Working on Target = % Backlogs on Problem List The percentage of Backlogs generated which address issues that appear on the “Top 10” historical problem list. the Condition Monitoring effort may be misdirected. There are no Benchmarks or targets related to this metric. There is no Benchmark or target for this metric however. 2.8 .2.Detection Level Potential Failure Detection (PFD) Recorded Backlogs = X 100 (%) Total defects pending Caterpillar Confidential Yellow Copyright 2007 Caterpillar. the other areas must be encouraged to increase their involvement since “shop found” defects are typically far less efficiently executed due to the inability to plan the workload.a direct function of the number of machines being monitored. inspectors. however. All Rights Reserved. there is no Benchmark or target. additional emphasis should be placed on the offending party(s) to encourage their participation in the defect detection process.2. if the percentage of “shop-found” defects is disproportionately high.7 . 2.Backlogs Generated by Origin Backlogs Generated = Backlogs Generated in the Period by area of origin (by Origin) Backlogs Generated by Origin identifies which areas that are or are not contributing to efforts by Condition Monitoring in failure detection.

3. An indication of the pending workload and risk for failure. 2.2 . Since this number is dependent upon the size of the fleet being managed.3 . Backlog generation should be viewed in the context of % scheduled downtime and. however a reasonable target is that there should be no more than five pending Backlog repairs per machine. Proprietary Material of Caterpillar Inc. 2. All Rights Reserved. Although inspections are limited to visual inspection.3. control and manage problems identified through Condition Monitoring such that they do not result in unnecessary downtime. Since this measure is a direct function of the number of machines being monitored.3.1 . there is no Benchmark or target. There is no Benchmark for this metric.Total Backlogs Pending The total number of defects identified by Condition Monitoring and pending in the Backlog Management process. there is no Benchmark or target for this metric. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . This metric assesses the Condition Monitoring effort in and ability to successfully detect potential problems before failure. 2. the Potential Failure Detection level can be used to assess the level of detection of Condition Monitoring.Backlogs Pending by Machine The total number of defects per machine identified by Condition Monitoring and pending in the Backlog Management process.Total Backlogs Generated Backlogs Generated = Total Backlogs Generated in the Period (Total) The number of defects identified and entered into the Backlog Management system during a specified period (typically one month).3 Backlog Management The following metrics are used to evaluate the ability of the Backlog Management process to prioritize. if the percentage of scheduled downtime Caterpillar Confidential Yellow Copyright 2007 Caterpillar. 2.This metric is based on a comparison between the number of Backlogs recorded in the system and the defects that can be detected in an inspection of a randomly selected sample of machines (10% of total fleet at minimum).

3. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . however. and waiting to be executed (“Green phase”).6 . the total number of Backlogs generated should be correspondingly high.3. 2.Estimated Labor To Repair The total estimated repair labor man-hours required to execute all of the pending Backlogs that have been generated. This metric is an indication of severity of the Backlog workload and the potential availability lost if manpower resources are insufficient to accomplish the task at hand.Backlog Status Summary The Backlog Status Summary defines the number of pending Backlogs that are waiting for planning (“Red phase”). This metric evaluates the ability of the maintenance organization to react appropriately to correct defects identified through the Condition Monitoring process.3.is low.Total Backlogs Executed Backlogs Executed (Total) = Total Backlogs Executed in the Period The number of Backlog repairs performed during a specified period (typically one month).Backlogs > 30 Days Old Measured from the date the Backlog was generated. waiting for parts / resources (“Blue phase”).7 . There is no Benchmark or target for the Backlog Status Summary however this metric analyzed to identify any weak area(s) in the detect-plan-execute cycle that may be delaying the Backlog repair execution process.5 .3. there should be a balance between the number of Backlogs generated and executed. All Rights Reserved. There is no Benchmark for this metric but a reasonable target is that the total estimated repair labor man-hours required to clean up the Backlog list should be < 5% of available man-hours labor for the month. 2. 2. Since this measure is related to the number of Backlogs in the system. there is no Benchmark or target. thus Backlog Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Proprietary Material of Caterpillar Inc.4 . this metric assesses the quality and timeliness of the response of the Backlog Management system in its ability to respond proactively to eliminate potential problems. 2. It is important to note that Backlogs are potential failures.

Percentage Scheduled Downtime % Scheduled Downtime = Scheduled Downtime Hours Total Downtime Hours X 100 (%) A high percentage of unscheduled downtime incidents results in very inefficient use of resources and excessive costs since personnel are frequently shuffled from job to job and facilities and manpower requirements need to be sufficiently large to accommodate huge swings in the number of machines down for repairs.4.2 . Proprietary Material of Caterpillar Inc.1 .4 Planning and Scheduling The following metrics are used to evaluate how well the Planning and Scheduling process is organized and functioning to ensure that planned activities can be accomplished both efficiently and effectively and that they do not result in unnecessary downtime. A reasonably aggressive target for most sites is 60%. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . 2. Data collected from mine studies has shown that the average downtime for unplanned / unscheduled work is up to eight times greater than the downtime for planned / scheduled activity. All Rights Reserved.Schedule Compliance by Hours Schedule Compliance = (by hours) Scheduled PM & Repair Hours Executed PM & Repair Hours Scheduled X 100 (%) Schedule Compliance (by hours) is the ratio of scheduled Preventive Maintenance and repair downtime hours actually executed to the Preventive Maintenance and repair downtime hours scheduled. There is no Benchmark for this measure however an aggressive target is that no Backlogs are greater than 30 days old. 2.age is an indication of the risk of failure that a site is under.4. The Benchmark for percentage of scheduled downtime is 80% of maintenance and repair downtime activity is executed on a scheduled basis. 2. There is no Benchmark for this metric but the target should be in the range of 90 to Caterpillar Confidential Yellow Copyright 2007 Caterpillar.

4 .Components Exchanged (scheduled) Components Exchanged = PCR’s Scheduled & Executed PCR’s Executed X 100 (%) Components Exchanged is the ratio of component replacements scheduled and actually replaced to components replacements scheduled. if the result is consistently low.4.4.100%. if the result is consistently low. the workforce is inefficient. it could mean that the schedule is too ambitious. or that the amount of unscheduled downtime during the period was such that it interfered with work that had been previously scheduled. if the result is consistently 100%.Estimated Time To Repair Pending Backlogs The total estimated repair downtime hours required to execute all of the pending Backlogs that have been generated. At the time a repair request is entered (Backlog generated) the Estimated Time to Repair (ETTR) must Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Just as was the case for Schedule Compliance by hours.5 . 2. 2. there is no Benchmark for this metric but the target should be in the range of 90 to 100%. There is no Benchmark for this metric but the target should be 100%. All Rights Reserved.4. 2.Schedule Compliance by Events Schedule Compliance = (by events) Scheduled PM & Repair Events Executed PM & Repair Events Scheduled X 100 (%) Schedule Compliance (by events) is the ratio of scheduled Preventive Maintenance and repair events actually performed to the Preventive Maintenance and repair events scheduled. Conversely. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . Conversely. it could mean that the schedule is too ambitious.3 . If the result is consistently 100%. it may be an indication that the schedule is too conservative (does not provide sufficient “stretch”. the workforce is inefficient. Once again. it may be an indication that the schedule is too conservative (does not provide sufficient “stretch”. or that the amount of unscheduled downtime during the period was such that it interfered with work that had been previously scheduled. Proprietary Material of Caterpillar Inc.

if one assumes that program execution is relatively current. It is important to note that since programs are generated to cover fleets of equipment.4. This metric is an indication of extent of the program execution workload and the potential availability lost if resources are insufficient to accomplish those tasks.4. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. It is important to note here that since fleets tend to come due for component replacement in “batches”. i. This metric is an indication of extent of the component replacement workload and the potential availability lost if resources are insufficient to accomplish those tasks. The program will typically define the estimated time to execute each program. There is no Benchmark for this metric but a reasonable target is that the downtime required for component replacement should not result in more than 2% unavailability. it serves as a tool for the Planning process to enable it to “manage” availability by scheduling work in such a way that the availability goal can be met. This metric is an indication of extent of the Backlog workload and the potential availability lost if resources are insufficient to accomplish the task at hand. those programs tend to come in “batches”.be identified to permit effective planning of required corrective actions.Estimated Time To Execute Factory Programs The total estimated repair downtime hours required to perform all overdue factory programs. There is no Benchmark for this metric but. 2. a reasonable target is that the downtime required for component replacement should not result in more than 1% unavailability. thus this metric is highly variable and must be looked at over the long-term … 12-24 months. Just as with the ETTR for Backlogs.6 . 2.7 .Estimated Time To Replace Overdue Components The total estimated repair downtime hours required to replace all overdue components.e. Just as with the ETTR for Backlogs and component replacement. Standard jobs for component replacement will forecast the estimated time to replace each component. There is no Benchmark or target for this metric. this measure serves as a tool for the Planning process to enable it to “manage” availability by scheduling work in such a way that the availability goal can be met. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . Proprietary Material of Caterpillar Inc. thus this metric is highly variable and must be looked at over the long-term … 6-12 months. All Rights Reserved. this measure serves as a tool for the Planning process to enable it to “manage” availability by scheduling work in such a way that the availability goal can be met. PIP & PSP’s.

5.5. A reflection of the level of satisfaction of on-site parts warehouse performance. Proprietary Material of Caterpillar Inc.Unavailability Parts Unavailability PD = (1 – Availability) X Parts Delay Downtime Total Downtime X 100 (%) Caterpillar Confidential Yellow Copyright 2007 Caterpillar.Warehouse Service Fill Level (instantaneous) Service Fill Level = (instantaneous) Parts Orders Closed at 1st Request Total Parts Orders X 100 (%) Instantaneous Service Fill Level is a parts management efficiency indicator that quantifies the percentage of individual parts requests entered against the on-site parts warehouse for repairs (including Backlog parts requests) and filled / closed at the first call. An aggressive target is > 90%. We do not have sufficient data to define a Benchmark but an aggressive target is 100%.Service Fill Level (24 hours) Service Fill Level = (after 24 hours) Parts Orders Closed in 1st 24 Hours Total Parts Orders X 100 (%) Service Fill Level after 24 hours is a parts management efficiency indicator that quantifies the percentage of individual parts requests entered against the on-site parts warehouse for repairs (including Backlog parts requests) and filled / closed in the first 24 hours after the first call. 2.5.2 .5 Parts Management The following metrics are used to determine how well maintenance activities are supported by the parts inventory and evaluate the relationship between the Parts. All Rights Reserved.2. A reflection of the level of satisfaction of on-site parts warehouse performance.3 . 2.1 . 2. Planning & Scheduling and Maintenance Departments in their efforts to avoid unnecessary parts-related downtime. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . The Benchmark for Instantaneous Service Fill Level is 95%.

Defining a realistic target for this metric is highly dependent upon site logistics of the specific operation including transportation. the inability of the maintenance organization to detect problems in advance of failure and plan & schedule the work and associated resources accordingly.e. 2. The percentage of Emergency Orders is another method of analyzing the extent to which the maintenance organization is behaving pro-actively and control of the fleet. Caterpillar Confidential Yellow Copyright 2007 Caterpillar.5. it may signify potential problems with inventory quality / quality and/or a higher than normal percentage of unplanned downtime. it may be due either to the fact that the maintenance organization is not doing a good job of defining the parts inventory support requirements to the Parts Department or that the Parts Department is not delivering on its obligation to support the site with the required parts.5%. There is no Benchmark or target for this metric.Emergency Orders Emergency Orders quantifies the percentage of parts orders that are placed against the system on an emergency basis. If parts inventory quality / quality is found to be an issue. If unavailability (downtime) due to parts delays is significantly higher than . There is no Benchmark or target for this metric.5. i.5%.e. “panic mode”.4 .Emergency Response Time Emergency Response Time quantifies the average response time (in days) to satisfy parts requests that cannot be filled instantaneously.6 . Proprietary Material of Caterpillar Inc.5 . 2. the remoteness of the site. This parameter works and should be analyzed in conjunction with Instantaneous Service Fill Level. the capacity and design of the parts warehouse.Unavailability due to parts delays quantifies the impact of parts delay events on availability. 2. i. All Rights Reserved.5. There is no Benchmark associated with this metric but a reasonable target is < . costs associated with carrying the inventory and the specific requirements of the site in terms of any availability guarantees that may be in place. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .Parts Inventory Rotation Parts Inventory Rotation is defined as the annual turnover of parts held in the on-site parts warehouse. No Benchmark is available for this parameter.

facilities.5. MTTR and % of scheduled work. because this is proportional to the size of the fleet being supported.8 . Trending inventory value over a 6 to 12 month period and relating the trend to fleet performance results such as MTBS.6 Repair Management The following Repair Management metrics are indicators of the adequacy of the maintenance personnel. There is no Benchmark or target associated with this measure. is one way of determining the impact of parts support on the overall site performance. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .1 . 2.7 . there is no Benchmark or target for this metric.2. All Rights Reserved.5. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. there is no Benchmark or target for this metric. Here again. tooling and support equipment and how well those resources are organized and managed to perform efficient & effective repairs while contributing to efficiency. 2. Because this is proportional to the size of the fleet being supported. 2. cost and availability objectives.6.Inventory (value) This metric quantifies the value of the on-site parts inventory. Trending inventory levels over a 6 to 12 month period and relating the trend to fleet performance results such as MTBS. is one way of determining the impact of parts support on the overall site performance. Proprietary Material of Caterpillar Inc. MTTR and % of scheduled work.MTTR (shop service) MTTR shop = Total Shop Repair Downtime Number of Shop Repairs (hours) The average downtime hours (including delays) required to execute shop repairs.Inventory (items) This metric quantifies the number of individual line items maintained onsite in the parts inventory. whether it is scheduled or unscheduled and the extent to which repairs are grouped for optimum efficiency. Actual results will vary significantly based upon the nature of the repair.

as such. decisive decision-making.2. higher quality and more efficient repairs can be performed in the shop.3 . they should release it to the shop unless those resources are unavailable. There is no Benchmark associated with this measure but a reasonable target is <1 hour. take corrective actions accordingly.MTTR (field / without delays) MTTR field = Total Field Repair Downtime Number of Field Repairs (hours) The average downtime hours (excluding delays & response time) required to execute field repairs.2 . the target for MTTRfield is relatively low. There is no Benchmark associated with this measure but a reasonable target is <. This measure enables site management to assess the impact of delays on shop repair execution and. 2.MTTR (field) MTTR field = Total Field Repair Downtime Number of Field Repairs (hours) The average downtime hours (including delays & response time) required to execute field repairs.MTTR (shop service / without delays) MTTR shop = Total Shop Repair Downtime Number of Shop Repairs (hours) The average downtime hours (excluding delays) required to execute shop repairs. It should be noted here that the field service crew is the “first line of defense” for the maintenance organization and. Proprietary Material of Caterpillar Inc. There is no Benchmark or target associated with this measure. <1 hour. Thus.4 . All Rights Reserved. Consequently. if delays are found to be a problem. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . if the field service crew determines that a repair can be better performed in the shop environment.5 hour. and unless the machine is not mobile.6.6.6. This measure enables site management to assess the impact of delays on field repair execution Caterpillar Confidential Yellow Copyright 2007 Caterpillar. their attention should be focused on rapid remedial actions and fast. 2.

and/or a higher than normal amount of unscheduled work.Unavailability Delays Unavailability D = (1 – Availability) X Delay Downtime Total Downtime X 100 (%) Unavailability due to delay downtime quantifies the impact of delays associated with shop and field repairs on availability. Proprietary Material of Caterpillar Inc.6. excessive workload. All Rights Reserved.6. if delays or response time are found to be problems. it may be related to inadequate manpower. excessive field response times.and.6. A realistic target depends upon the level of current performance. There is no Benchmark for this metric but a reasonable target is that redo should be < 2% of total repair man-hours. if repair quality is an issue (technicians are creating more problems than they are correcting). poor communications to the field service crew. i.6 . the target should be much higher than if repair quality is relatively good. 2.e. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. take the corresponding corrective actions. 2.% Redo Redo = Σ Repair Redo Man-Hours Σ Repair Man-Hours X 100 (%) Percentage Redo is a measure of repair effectiveness. There is no Benchmark available for this metric. There is no Benchmark associated with this metric but a reasonable target is < 1%.7 .MTBS after Repairs MTBS after Repairs = Total Operating Hours to First Stop Number of Repairs (hours) The average operating hours to the first stop after each repair is an indication of repair quality and effectiveness. It is the proportion or percentage of man-hours labor dedicated to redo (correcting repair errors) to the total number of man-hours labor dedicated to all repairs. If unavailability (downtime) due to delays is significantly higher than 1%. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . 2.5 .

Contamination Control The “Star” contamination control rating scheme is a valid indication of the organizations ability to provide and maintain a working environment and work procedures that promote and support high quality repair execution.7.2. The Benchmark is “5 Star”. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .6.Component Life Target Achieved _ Component Life Components Exchanged > Life Target = Target Achieved Total Components Exchanged X 100 (%) The Component Life Target Achieved quantifies the percentage of components that are reaching target life before component exchange. 2. There is no Benchmark for this measure but a reasonable target is that 100% of components achieve target life to rebuild. 2. There is no Benchmark for this measure but a reasonable target is that 100% of components are exchanged on a scheduled basis.Components Scheduled Components = Scheduled Scheduled Component Exchanges Total Components Exchanged X 100 (%) The Components Scheduled metric quantifies the percentage of components that are exchanged on a scheduled basis as a percentage of the total number of components exchanged in the period.1 .2 . 2. Proprietary Material of Caterpillar Inc.8 . All Rights Reserved.7.Component Replacement Costs Component Replacement = Cost Actual PCR Costs Budgeted / Target PCR Costs X 100 (%) Caterpillar Confidential Yellow Copyright 2007 Caterpillar.7.3 .7 Component Management 2.

PCR Compliance PCR’s Planned. If unavailability (downtime) due to component replacement is significantly higher than 2%.5 . If the component inventory quality / quality is found to be an issue. There is no Benchmark associated with this metric but a reasonable target is < 2%.7.6 . The material contained herein is confidential and is not to be copied or distributed without written permission by owner X 100 (%) . There is no Benchmark for this metric but a valid target is that the Availability Index during the first six months after major component exchange is > 88%.7. and/or a higher than normal percentage of unscheduled component replacement events.Unavailability Component Replacement Unavailability CR = (1 – Availability) X Comp.4 . it may be due either to the fact that the maintenance organization is not doing a good job of communicating the component replacement plan the Parts Department and/or CRC or that the Parts Department and/or CRC is not delivering on its obligation to support the site with the components they require. This can be calculated by monitoring Availability Index for the individual machine for the period. Proprietary Material of Caterpillar Inc. 2. component rebuild (CRC) turnaround time.7. 2. All Rights Reserved. 2. There is no Benchmark for this measure but a reasonable target is that actual component replacement costs should not exceed (< or = 100%) budget.The Component Replacement Cost metric quantifies the ratio of actual component replacement costs to budgeted (target) costs. Scheduled & Executed PCR = Compliance Total PCR’s Planned & Scheduled Caterpillar Confidential Yellow Copyright 2007 Caterpillar. it may signify potential problems with component inventory quality / quality.Availability Index after Component Exchange The Availability Index during the first six months after major component exchange is a very good indication of the quality of work being performed during component exchange. Replacement DT Total Downtime X 100 (%) Unavailability due to component replacement downtime quantifies the impact of component replacement events on availability.

workforce inefficiency. If unavailability (downtime) due to personnel delays is significantly higher than .Backlogs Executed during Component Exchange Backlogs B’logs Executed during Component Exchg Executed = Total Backlogs Pending with PCR X 100 (%) Backlogs executed during component exchange is a good indication of how well the organization is using the “window of opportunity” presented by component exchange to bring the equipment up to a standard that will permit it to perform reliably. 2.PCR Compliance defines the number of components that are replaced on a planned and scheduled basis as a percentage of the total number of components planned and scheduled. There is no Benchmark associated with this metric but a reasonable target is < . and/or a higher than normal amount of unscheduled work. All Rights Reserved.8 Human Resources and Training 2. i.7.8. 2. There is no Benchmark for this measure but a reasonable target is that 100% of components that are planned and scheduled for replacement are indeed executed per the plan. Proprietary Material of Caterpillar Inc. it may signify potential problems with manpower staffing levels. higher than normal workload (an abundance of Backlogged repairs).e. work that enjoys the benefits of planning & scheduling are typically executed far more efficiently than work that is Caterpillar Confidential Yellow Copyright 2007 Caterpillar.7 .1HR .5%.5%.Unavailability Personnel Delays Unavailability PD = (1 – Availability) X Personnel Delay Downtime X 100 (%) Total Downtime Unavailability due to personnel delay downtime quantifies the impact of personnel delays (waiting on manpower) on availability. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . There is no Benchmark for this measure but the target should be that 100% of items on the pending Backlog list are executed during the component replacement activity.

Personnel Hands-On to Machine Ratio HO Personnel – Machines Ratio Total Hands On Technicians = Number of Machines (-) This ratio gives us a quick relationship between the work force on-site and the number of machines.2HR . 2.Effective Man-Hours Effective Man Hours = Σ Labor Hours (hands on) present in the month [ h ] The number of hands-on labor hours available per month is a metric that helps understand / measure the manpower available on site. 2. (-) 2. All Rights Reserved.8. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . 2. The total number of technicians on-site can be easily compared with other metrics and other sites with similar operational characteristics. This metric is use as a reference for other metrics.8.Personnel Total to Machine Ratio Total Personnel – Machines Ratio Total Personnel = Number of Machines [-] Caterpillar Confidential Yellow Copyright 2007 Caterpillar.8. HR .performed in an environment of constantly changing priorities such as the one created when a high percentage of the workload is unscheduled. This metric can be used as a quick reference and must be combined with other metrics to better understand the personnel situation on-site.Direct Maintenance Personnel Direct Maintenance = Quantity of Hands-On Technicians Personnel This metric documents the number of hands-on technicians. Proprietary Material of Caterpillar Inc.5.8.3HR .4HR .

4 & 2. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . All the above metrics are very straightforward and can be easily obtained. etc. The documentation of these figures link with the characteristics of the fleet and the on-site operation will give us a quick reference for future studies.Total Maintenance Personnel Total Maintenance Personnel = Total Quantity of Maintenance Personnel [-] This metric asks for the total maintenance personnel on-site. Proprietary Material of Caterpillar Inc. supervisors. administration personnel. technicians.8.8. planners.Overtime to total Effective Hours Ratio Overtime Ratio Overtime hours in the Period = X 100 (%) Total effective hours in the Period The overtime ratio measures the amount of extra hours required to satisfy the maintenance operation as a percentage of the total effective hours available in the period.3. This metric in conjunction with metrics in 2. 2. Overtime may be an indication of labor needs or extra maintenance demand in a particular period of time.7HR .8. secretaries. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Constant overtime levels should be an indicator to consider to review and possibly to improve the on-site organization structure.8.5 gives us a dimension of the maintenance crew on-site and can be compared with other similar operations to support the understanding of personnel efficiency.6HR . All Rights Reserved. Total personnel includes all people on site.8. How many people we have on-site to support the fleet of equipment.This metric establishes the relationship between the total personnel on-site and the number of machines. 2. 2.

2T – Training Hours by Systems (vs. Problems) Training Hours = Ratio by Systems Training Hours on “System A” Total Training hours in the Period X 100 (%) This metric gives us the opportunity to assess if the training efforts are addressing the actual problems that the maintenance organization is facing. 2.1T – Training Hours / Labor Hours Training Hours Ratio Total Training Hours in the Period = X 100 (%) Total Labor Hours available in the Period This metric. Idle time includes breaks for lunch and shift changes.2. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . The ideal situation would be to have a ratio very close to 100%. Proprietary Material of Caterpillar Inc. indicating a full usage of the labor available.8. All Rights Reserved. 2. We don’t have results for our mining projects but we believe that if it were known it would be much higher than the OIT target. Be careful in those cases in which the on-site operation “justifies” technician labor hours by charging 100% of their hours to the machines being serviced. gives us the relationship between the hours invested in training and the total available labor hours in the period.8. The relationship between the Ranking of Problems (Top 5 or 10) obtained from the machine repair history and the hours trained in that particular subject or machine area must be very strong. This organization considers that a minimum of 1% of every 100 labor man-hours be dedicated to training to be acceptable.8. used by the International Labor Organization. The training needs detection (TND) process should consider this ranking of problems Caterpillar Confidential Yellow Copyright 2007 Caterpillar.8HR – Labor Hours Covered by Workorders Total Labor Hours in Workorders Labor Hours in Work = Total effective hours in the Period Order X 100 (%) The labor hours captured in the workorders are charged to specific machines whenever a technician is assigned and working on that particular machine. This ratio is an indication of technician idle time.

This metric gives us an indication as to how many competencies we need in order to do the job efficiency and effectively. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. This metric compares the number of competencies that have been certified in a formal certification process against the total competencies required.8.and schedule training activities to support the organization to be better prepared to solve those problems. It is also an indication of the importance that is given to the training activities. 2.8. Are we complying with what we scheduled? 2. the on-site organization must have a clear definition of the roles and responsibilities for each of the positions in the organization and the number of people assigned to each of those particular roles. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .4T – Competencies Required Competencies Required = Competencies defined in each role & responsibilities X Number of People in the corresponding Roles To obtain this metric.8. All Rights Reserved. Proprietary Material of Caterpillar Inc. total number of competencies required.3T – Training Program Compliance Training Program = Compliance Training hours completed Total training hours scheduled X 100 (%) The training compliance metric gives us an indication of how well the onsite operation is following the training activities scheduled.Competencies Satisfied % of Competencies Satisfied Personnel Competencies Certified = X 100 (%) Competencies Required The percentage of Competencies satisfied will give us an understanding of how well the organization is prepared to perform the maintenance tasks. 2.5T .

2 . The personnel skills must be surveyed and kept in an updated Data Base.9 Continuous Improvement 2.] Caterpillar Confidential Yellow Copyright 2007 Caterpillar. The % of CI projects dedicated to solve those problems is an indication of effective communications and clear management to direct the organization efforts where they are most needed.I. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .8.6T .Top Problems with C. All Rights Reserved. Proprietary Material of Caterpillar Inc. Projects Active CI Projects = Number of CI projects in process [ .1 . 2. Projects CI working on = % of Continuous Improvement Projects on Target (CIOT) Problem Ranking Top 1-2 Top 3-5 _________ % _________ % Top 6-10 _________ % The Ranking of Problems is based on the Machine Repair History and represents those problems or areas that most affect the final performance of the fleet. 2.Active C.9.Personnel Skills Inventory Completion Personnel Skills Inventory Skills / Competencies in Inventory = X 100 (%) Total Personnel Skills The Personnel Skills Inventory is probably the foundation for any training detection needs or gap analysis study.9.2.I.

This metric measures if the maintenance organization is continually looking for solutions and better ways to do things.3 . 2.This metric. Projects Opened during Period CI Projects Opened = Number of CI Projects generated in the Period [ . 2.] This metric is an indication of the regularity of the CI process in place.C. Proprietary Material of Caterpillar Inc. or how many solution proposals are we delivering to the organization. It is also is an indication of the effectiveness of the Problem / Opportunity detection process and management.3 above gives us a measure of the CI process efficiency.] The number of CI projects opened or generated in the period is an indication of maturity of the CI process.4 . Projects Closed during Period CI Projects Closed = Number of CI projects closed in the Period [ .9.I. 2. that is how many CI projects are we closing in a period of time. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .9.9. Project Execution Time CI Project Execution = Average days to complete CI projects Time [days] This metric in conjunction with 2.9.5 . the number of CI projects that are in process or active.I. We recommend measuring this result on a monthly basis.I.C. gives us an understanding of the magnitude of the CI effort and how active the organization is in the search for solutions or optimizations. All Rights Reserved.Average C. Average days to close the CI Projects coupled with the regularity of delivery measured by CI Projects Closed in the period provides us a means of telling if the CI pipeline has the ability to deliver results in a reasonably constant timeframe.

C. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. Accurate records are a must in order to be able to calculate and validate the results of this metric. Project Delivered Value CI Delivered Value = Proven Benefits due to CI solutions Implemented [$] This metric measures the effectiveness of the CI process in place through the proven value delivered to the operation.9. an increase in productivity. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . This value can be a recorded direct savings. an improvement in availability translated into more equipment hours to produce and / or maintenance labor reduction.2. Proprietary Material of Caterpillar Inc.6 . All Rights Reserved. etc.I.

. Operational stoppages. A measurement parameter that enables performance against some predefined Target or Benchmark to be monitored. The Target for a particular Performance Metric can be somewhat arbitrary and will likely vary by product.e. Operations & Maintenance Depts. a standard by which a Performance Metric can be measured or judged. by product. lunch breaks. documented. sustainable performance over time relative to some Performance Metric. interpret and present quantitative data.. Project & Contract Controls Dept. NOTE: All KPI's are Performance Metrics but Performance Metrics are not always KPI's. operation or business relative to past results or others. a top level Performance Metric.g. A Benchmark is determined by and represents actual. Key Performance Indicator: Also known as KPI. The collection of KPI's used to describe performance of a particular project may vary from site to site. application and even one's perspective. application or specific site. All Rights Reserved. analyze. Target: A desired goal.Glossary of Terms Performance Metric: A term used to describe the outcome of any process used to collect. shift changes. are not included as shutdowns. a five-minute event counts the same as a 100-hour event and a headlight replacement counts the same as a catastrophic major component failure. Shutdown count is independent of event duration or complexity. his expectations and / or contractual commitments. Proprietary Material of Caterpillar Inc. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. etc. Shutdown / Stoppage: An event that takes a machine out of service.e. i. e. dealer & customer. represents and quantifies "best practice" of an operation or of specific functions within that operation according to a specified Performance Metric. A Benchmark may vary by product but. and manufacturers’ specifications. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . by contrast. The Target is frequently determined by customer needs. “Grouped” repairs count as a single shutdown. refueling and inspections executed during lube or refueling activities. A measurement used to gauge performance of a function. i. Shutdowns may be scheduled or unscheduled and include all types of maintenance and repair activities except daily lubes. Benchmark (noun): A world-class performance standard relative to a specific Performance Metric. is much less arbitrary than a Target.

etc. Unscheduled Hours: Hours outside the plan. i. All Rights Reserved. etc. equipment unreliability. In either case. Available Hours: Time that a machine is capable of functioning in the intended operation. Typically determined by the mine Planning and Operations Departments in conjunction with their overall production targets. some dispatch systems do track production delay hours in an effort to minimize and manage them. Scheduled Hours: Time that a machine is scheduled for operations. weather. intended function.e. lunch breaks. The material contained herein is confidential and is not to be copied or distributed without written permission by owner .Failure: The inability of a device or system to perform in its required function … the cessation of proper functioning or performance. Operating Hours: Time that a machine is actually operating in the Stand-by Hours: Time that a machine is available for operation but is not being used. Failures may be the result of technical product issues. etc. Production delay hours are frequently not accounted for separately and are included in the operating hours tabulation. or due to maintenance / repair neglect. 8760 hours / year. equipment management ineffectiveness in the area of problem avoidance.g. any holidays that are observed. Operational Delay Hours: Time that a machine is available for operation but is not being used due to shift changes. etc. "over-trucked".e. Just as was the case for production delay hours. known as "Ready line" hours. acts of God. 168 hours / week. lost time that result from accidents. e. Also Production Delay Hours: Time that a machine is operational but is waiting with the engine running due to blasting. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. no operator available. strikes. etc. (typically defined by the customer or contained in the Customer Support Agreement or MARC). Total Calendar Hours: Total time in the period to be analyzed. i. e. Proprietary Material of Caterpillar Inc. One the other hand. for example a power failure. prayers. loader wait time. 720 hours / 30 day month. meetings.g. lost hours that result from production delays should be reconciled and not counted against machine availability.

Caterpillar Confidential Yellow Copyright 2007 Caterpillar. policy at many mines ignores operational delay hours altogether and therefore. bay space. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . repair support equipment. Repair Delay Hours: Time that machine is waiting for repairs due to unavailability of labor. out of service for all forms of maintenance.lost hours that result from operational delays should be reconciled and never counted against machine availability. decision making. May be scheduled or unscheduled. On the other hand. does not credit operational delay hours as either scheduled or available hours. Includes inspection and diagnostic time as well as any delay or wait time for manpower. tooling. parts. as part of the machine downtime record. facilities. Proprietary Material of Caterpillar Inc. parts. etc. repairs and modifications. literature. All Rights Reserved. Downtime Hours: Time that a machine is not available for operation. yet unrecognized. equipment or tooling. Typically not well documented in most machine downtime histories but is nonetheless included.

g. PM) facilitates an understanding of the influence each is having on the final outcome enabling management to focus its attention and resources on the most critical issues. of course. It is important to note that due to the fact that most machine workorder history databases to not do a very good job of documenting delays. the maintenance the equipment receives and product design shortcomings that may be peculiar to specific machines either by model or within a given range of serial numbers. …) or even process (e. the duration of machine downtime events (MTTR) includes any delay downtime associated with the particular event. delays are not listed separately in the table. engine. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . However a collection of guidelines for large Off Highway Trucks in the 785 – 793 size class is available to evaluate actual site performance in terms of MTBS.e. The table on the following page provides a baseline that can be used as a reference until individual site experience and history can be documented. The identification and quantification of problems by component (e.Generic Pareto Reference for Large Off Highway Trucks The most successful mining support operations are those that have a clear understanding of the problems and issues they are facing. Using it to generate and perform a top problems distribution analysis enables Project Management to identify and prioritize critical issues affecting success of the project for investigation and resolution. A better way of doing business would be to break out actual repair downtime from any delays associated with the Caterpillar Confidential Yellow Copyright 2007 Caterpillar. duration of downtime events (MTTR) and impact on Availability for each of the major areas on the machine. …). transmission. All Rights Reserved. As such.g. generic since actual results achieved at any given mine are site-specific because results of this kind are a function of not only application severity but also of the operating environment. i. hydraulics. The data is representative of a site operating at an Availability Index of approximately 90% and is. Unfortunately there are no Benchmarks that are applicable to this kind of measurement. those that will derive the maximum benefit. the information contained in this reference defines what we believe to be a reasonable level of acceptability for frequency of downtime events (MTBS).g. electrical. While not actually benchmarks. MTTR and impact on Availability. Proprietary Material of Caterpillar Inc. system (e.

32% 2.20 5. "MISCELLANEOUS": Includes any shutdown event that is not covered by one of the other description codes. ENGINE: Includes all engine and enginerelated components and systems not covered by another description code.02% 0. hydraulic actuators.80 0.00 2.70 6. Caterpillar Confidential Yellow Copyright 2007 Caterpillar. The material contained herein is confidential and is not to be copied or distributed without written permission by owner . etc.10 5.80 hours.37% 0.70 7.00 5.g basic engine.22% 0.35% 0. seat.90 0. Proprietary Material of Caterpillar Inc.16% 0. windows. All Rights Reserved.01% 0. wiring harnesses.45% 0. MTTRPM = 16. CAB / OPERATOR STATION: This description code includes cab.20 0. connectors. Availability Impact (%) "BASE MACHINE": Includes ladders.20 9. windshield.52% 0. lines.21% 0.00%.repair and.01% 0.90 1.80 hours for a 500 hour PM interval. etc. fuel system. HYDRAULIC SYSTEM: This description code includes all pumps.60 6. Generic Pareto Reference Large OHT's (785-793) Component / System ref. ELECTRONICS & ELECTRICAL: Includes electrical / electronic components & systems. air intake & exhaust.07% 0.90 9. An excessive number of unknown events is an indication of inadequate recordskeeping practices. MTTR (hours) ref.06% 0.52% 0.76% 0. concentrate the corrective efforts on the root cause of the problem.30 6. MTBSPM = 500 hours. etc. brackets and other miscellaneous areas of the machine not covered by one of the description codes in the list. In other words.00 2.08% 0. MTBS (hours) ref.g.20 5. lighting.90 1. tanks. etc not included in another description code. "UNKNOWN": Stoppage is unidentified or data is unavailable. MTTR = 16.52% 0. if MTBS for PM = 500 hours.10% NOTE: If the PM interval is 500 hours.90 0.14% 1.90 0.09% 0. NOTE: MTTR = 16.30 0. sheet metal.20 2.30 3.10 4. e.40 1.00% 0.12% 0.80 hours and Impact of PM on Availability = 3.17% 0. hand rails.53% 0. hoses.27% 0. oil coolers.04% 0.90 3. if it is found that delays are an issue. Accidents Air System & Starting Air Conditioning Auto Lube System Base Machine Brakes & Brk System Cab / Operator Station Chassis Cooling System Differential Dispatch System Dump Body Electronics & Electrical Engine Filters Final Drives Front Wheels Hoist System Hydraulic System Mirrors miscellaneous PM Steering System Suspension Switches & Sensors Tires & Rims Torque Converter Transmission unknown 6750 2100 6650 6100 4000 1200 450 2850 1300 6950 800 3750 1250 550 2800 2100 6150 1350 1250 850 750 250 1950 3150 1950 550 7250 900 5850 28.60 7. VIMS. e.30 6.29% 0.35% 0.61% 0.10 12.30 12.