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KEY PERFORMANCE

INDICATORS

Measuring and Managing the Maintenance


Function

November 2005

Written by:
Al Weber
Reliability Consultant, Ivara

Ron Thomas
Director of Reliability Practices, Dofasco

IVARA CORPORATION
935 Sheldon Court,
Burlington Ontario. Canada. L7L 5K6

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Copyright © 2005 Ivara Corporation. All rights reserved.

Information in this document is confidential.

No part of this document may be reproduced, stored in


a retrieval system or transmitted in any form or any
means electronic or mechanical, including
photocopying for any purpose other than as agreed
without permission of
Ivara Corporation.

Ivara Corporation
935 Sheldon Court
Burlington, Ontario
Canada. L7L 5K6
Toll free: 1-877-746-3787
Tel: 905-632-8000
Fax: 905-632-5129
www.ivara.com

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Maintenance Key Performance customer service, operating costs, safety
Indicators and environmental integrity.

Introduction To achieve this performance there are three


inputs to be managed. The first requirement
“It is not possible to manage what you cannot is Design Practices. Design practices
control and you cannot control what you cannot provide capable equipment "by design"
measure!” (Peter Drucker) (inherent capability), to meet the
manufacturing performance requirements.
Performance measurement is a fundamental
principle of management. The measurement The second requirement is Operating
of performance is important because it Practices that make use of the inherent
identifies current performance gaps between capability of process equipment. The
current and desired performance and documentation of standard operating
provides indication of progress towards practices assures the consistent and correct
closing the gaps. Carefully selected key operation of equipment to maximize
performance indicators identify precisely performance.
where to take action to improve
performance. The third requirement is Maintenance
Practices that maintain the inherent
This paper deals with the identification of capability of the equipment. Deterioration
key performance indicators for the begins to take place as soon as equipment
maintenance function, by first looking at the is commissioned. In addition to normal wear
ways that maintenance performance metrics and deterioration, other failures may also
relate to manufacturing metrics. Since occur. This happens when equipment is
performance measurements for pushed beyond the limitations of its design
maintenance must include both results or operational errors occur. Degradation in
metrics and metrics for the process that equipment condition results in reduced
produces the results, this document equipment capability. Equipment downtime,
presents a representation for the business quality problems or the potential for
process for maintenance. The document accidents and/or environmental excursions
then identifies typical business process and are the visible outcome. All of these can
results metrics that can be used as key negatively impact operating cost.
performance indicators for the maintenance
function.

Physical Asset Management

The purpose of most equipment in


manufacturing is to support the production of
product destined to downstream customers.
Ultimately the focus is on meeting customer
needs. This is illustrated in Figure 1.
Customer expectations are normally defined
in terms of product quality, on-time delivery
and competitive pricing. By reviewing the
composite requirements of all current
customers and potential customers in those Figure 1: Managing manufacturing performance
markets we wish to penetrate, the requirements to meet customer needs
performance requirements of our physical
assets can be defined. Manufacturing
Manufacturing key performance indicators
performance requirements can be
provide information on the current state of
associated with quality, availability,
manufacturing. Asset capability, operating

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practices and the maintenance of asset etc. In each of these areas maintenance
condition all contribute to the ability to meet may be a factor but it is not the only
these performance requirements. contributor. In order to maintain and improve
performance each function in the
Some typical key performance indicators for organization must focus on the portion of the
manufacturing include operating cost; asset indicators that they influence.
availability, lost time injuries, number of
environmental incidents, OEE and asset Similarly, other manufacturing level
utilization. performance indicators are not only a
function of maintenance. They are affected
Consider asset utilization, as depicted in by causes beyond the control of the
Figure 2. Asset utilization is a manufacturing maintenance function. Asset capability,
level key performance indicator. It is a operating practices and the maintenance of
function of many variables. For example, asset condition all contribute to the ability to
asset utilization is impacted by both meet performance requirements. If a
maintenance and non-maintenance related manufacturing level indicator is used to
downtime. Non-maintenance related measure maintenance performance,
downtime may be attributed to lack of improved maintenance may not result in a
demand, an interruption in raw material proportional improvement in the
supply or production scheduling delays manufacturing metric. For instance, in the
beyond the control of the maintenance asset utilization example, cited above, the
function. Asset utilization is also a function maintenance contributors may all be positive
of operating rate, quality and yield losses, and yet the resulting asset utilization may
not improve due to other causes.

A key principle of performance management


is to measure what you can manage. In
order to maintain and improve
manufacturing performance each function in
the organization must focus on the portion of
the indicators that they influence.
Maintenance performance contributes to
manufacturing performance. The key
performance indicators for maintenance are
children of the manufacturing key
performance indicators.

Key performance indicators for maintenance


are selected ensuring a direct correlation
between the maintenance activity and the
Figure 2: Asset Utilization is an example of a key performance indicator measuring it.
manufacturing level key performance indicator.
When defining a key performance indicator
for maintenance a good test of the metric
validity is to seek an affirmative response to
the question; “If the maintenance function
does ‘everything right’, will the suggested
metric always reflect a result proportional to
the change; or are there other factors,
external to maintenance, that could mask
the improvement?”

This paper focuses on defining key


performance indicators for the maintenance
function, not the maintenance organization.

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Figure 3: The Asset Reliability Process identifies what's required to manage the maintenance function.

The maintenance function can involve other A proactive Asset Reliability Process,
departments beyond the maintenance represented by the seven (7) elements in
organization. Similarly, the maintenance the model aims to deliver the performance
department has added responsibilities required by the enterprise to meet all of its
beyond the maintenance function and, as corporate objectives. Each element within
such, will have additional key performance the maintenance process is in itself a sub-
indicators to report. The key performance process. A brief description of each element
indicators for the maintenance organization follows:
may include key performance indicators for
other areas of accountability such as health Business Focus, represented by the green
and safety performance, employee box on the left, focuses the maintenance of
performance management, training and physical asset reliability on the business
development, etc. goals of the company. The potential
contribution of the asset base to these goals
The Asset Reliability Process is evaluated. The largest contributors are
recognized as critical assets and specific
The management of physical asset performance targets identified.
performance is integral to business success.
What we manage are the business
processes required to produce results. One Work Identification, as a process,
of these business processes is responsible produces technically based Asset Reliability
for the maintenance of physical asset Programs. Program activities identify and
reliability. The Asset Reliability Process is control failure modes impacting on the
shown in Figure 3. It is an integral part of a equipment's ability to perform the intended
much larger business process responsible function at the required performance level.
for managing the total enterprise. Activities are evaluated to judge if they are
worth doing based on the consequences of
failure.

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Planning develops procedures and work executed, this work may not achieve the
orders for these work activities. The desired performance results, despite
procedures identify resource requirements, significant maintenance costs. Without
safety precautions and special work Planning the correct and efficient execution
instructions required to execute the work. of the work is left to chance. The Planned
Maintenance Process is a cycle.
Scheduling evaluates the availability of all Maintenance work is targeted to achieve
resources required for work "due" in a required asset performance. Its
specified time frame. Often this work effectiveness is reviewed and improvement
requires the equipment to be shut down. A opportunities identified. This guarantees
review of production schedules is required. continuous improvement in process
Resources are attached to a specific work performance impacted by Maintenance.
schedule. The use of resources is balanced
out. Within the Planned Maintenance Process
two internal loops exist. Planning,
In the Execution process, trained, Scheduling, Execution and Follow Up make
competent personnel carry out the required up the first loop. Once maintenance
work. activities are initially identified, an asset
The Follow-up process responds to maintenance program, based on current
information collected in the execution knowledge and requirements, is initiated.
process. Work order completion comments The selected maintenance activities will be
outline what was done and what was found. enacted upon at the designed frequency and
Actual time and manpower, to complete the maintenance tolerance limits. The process is
job, is documented. Job status is updated as self-sustaining.
complete or incomplete. Corrective work
requests, resulting from the analysis of The second loop consists of the Work
inspection data, are created. Requests are Identification and Performance Analysis
made for changes to drawings and elements. This is the continuous
procedures. improvement loop. Actual asset
performance is monitored relative to the
The process of Performance Analysis required performance (driven by business
evaluates maintenance program needs). Performance gaps are identified.
effectiveness. Gaps between actual process The ‘cause’ of these gaps is established and
performance and the required performance corrective action recommended.
are identified. Historical maintenance data is
compared to the current process Performance Metrics for the Maintenance
performance. Maintenance activity costs are Function
reviewed. Significant performance gaps are
addressed by revisiting the Work The Asset Reliability Process represents the
Identification function. collection of ‘all’ tasks required to support
the maintenance function. The process is a
Each element is important to provide an supply chain. If a step in the process is
effective maintenance strategy. Omitting any skipped, or performed at a substandard
element will result in poor equipment level, the process creates defects known as
performance, increased maintenance costs failures. The output of a healthy reliability
or both. process is optimal asset reliability at optimal
cost.
For example, Work Identification
systematically identifies the Right Work to Asset Reliability Process measures are
be performed at the Right Time. Without leading indicators. They monitor if the tasks
proper Work Identification, maintenance are being performed that will ‘lead to
resources may be wasted. Unnecessary or results’. For example a leading process
incorrect work will be planned. Once indicator would monitor if the planning
function was taking place. If people are

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doing all the right things then the results will indication if the requirements of each
follow. The leading ‘process’ indicators are element are being satisfied and, if not, what
more immediate than results measures. action should be taken to correct the lack of
maintenance process adherence.
Result measures monitor the products of the
Asset Reliability Process. Result measures Work Identification
include maintenance cost (as a contributor
to total operating cost), asset downtime due The function of work identification is to
to planned and unplanned maintenance (as identify the ‘right work at the right time.
a contributor to availability) and number of
failures on assets (the measure of reliability: 1. Work Requests
this can then be translated into mean time
Initiating a work request is one method of
between failures). Results measures lag.
identifying work. Once a work request is
Failure is a good example. Typically the
submitted it must be reviewed, validated and
same piece of equipment doesn’t fail day
approved before it becomes an actual work
after day. Take a pump for example. Say the
order ready to be planned. If the work
pump fails on average once every 8 months.
request process is performing well, the
If we improve its reliability by 50% it will now
validation and approval/rejection of work
fail every 12 months. You have to wait at
requests should occur promptly.
least 12 months to see the improvement.
A suggested measure for the work request
Key performance indicators for the
process is:
maintenance function need to include both
leading (maintenance process) measures
and lagging (result) measures. This paper ♦ The percentage of work requests
focuses on identifying both leading and remaining in “Request” status for less
lagging measures of maintenance than 5 days, over a specified time period
performance. Collectively, these (for example the last 30 days). The
measurements are the key performance world class maintenance expectation is
indicators for the maintenance function. that most work (>80%) requests would
be reviewed and validated within a
Reliability Process Key Performance maximum of 5 days.
Indicators – Leading Measures
Work requests rely on the random
The maintenance process is made up of identification of problems or potential
elements. All elements are required to problems and bringing them to the attention
complete the supply chain. Key performance of maintenance to address them. In a world
indicators of the maintenance process are class organization, work identification is not
process assurance measures. They answer left to chance.
the question ‘how do I know that this
maintenance process element is being 2. Proactive Work
performed well?’ The day-to-day execution The ‘Asset Maintenance Program’ is
of maintenance is addressed through the designed to identify potential failure
seven elements of the Reliability Process; conditions, changes in state of hidden
Business Focus, Work Identification, Work functions and known age related failure
Planning, Work Scheduling, Work causes. The development of the Asset
Execution, Follow-up and Performance Maintenance Program defines the routine
Analysis. Key performance indicators for maintenance tasks that must be executed to
each element are recommended. achieve the performance levels required to
meet business requirements. If the ‘Asset
It should be noted that variations of these Maintenance Program’ is effective, it will
metrics may be defined or additional successfully identify and address most
performance metrics may be used. The maintenance preventable causes of failure.
metrics presented here provide a clear

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If the ‘Work Identification’ function is working ♦ The percentage of work orders in
well, the majority of work performed by ‘planning status’ for less than 5 days,
maintenance would consist of executing the over a specified time period. A world
Asset Maintenance Program (AMP) tasks class performance level of at least 80%
and the corrective work originating from it. of all work orders processed in 5 days or
less should be possible. Some work
The key performance indicator for the work orders will require more time to plan but
identification element is: attention must be paid to 'late finish or
required by date'.
♦ The percentage of available man-hours
used for proactive work (AMP + AMP 5. Quality of Planning
initiated corrective work) over a specified
These key performance indicators for
time period. The world class maintenance
planning do not reflect the quality of the
target for proactive work is 75 to 80%.
planning being done. A critical aspect of
Recognizing that 5 -10% of available man-
planning is estimating resources. The quality
hours should be attributed to improvement
of planning can be measured by monitoring
work (non-maintenance) this would leave
the accuracy of estimating. Labor and
approximately 10% - 15% reactive work.
material resources are the dominant
resources specified on a work order.
Work Planning
The accuracy of estimating labor can be
The primary function of the Work Planning
measured by:
element of the maintenance process is to
prepare the work to achieve maximum
efficiency in execution. ♦ The percentage of work orders with
man-hour estimates within 10% of
3. Amount of Planned Work actual over the specified time period.
Estimating accuracy of greater than
In general terms, planning defines how to do 90% would be the expected level of
the job and identifies all the required world class maintenance performance.
resources and any special requirements to
execute the work. A properly planned work A second metric of planning quality,
order would include all this information. addressing material estimates, would be:
Maximizing maintenance efficiency requires
a high percentage of planned work. ♦ The percentage of planned, scheduled
and assigned work orders, where
A measure of whether planning is taking execution is delayed due to the need for
place is: materials (spare parts) over the
specified time period. The world class
♦ The percentage of all work orders, over maintenance expectation is that less
a specified time period, with all the than 2% of all work assigned will have a
planning fields completed (ex. Labor material deficiency (due to
assignments, task durations, work planning).Note: this assumes the job
priority, required by date, etc). The world should not have been scheduled if the
class expectation is that >95% of all jobs materials were not available. Therefore,
should be planned. the problem is that the work order did
not account for all the required
4. Responsiveness of Planning materials.
Another key performance indicator for
Work Scheduling
planning is the time it takes a work order to
be planned. A suggested measure of this is:
Good planning is a prerequisite to
scheduling. The primary function of
scheduling is to coordinate the availability of

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the asset(s) to be maintained with all the ♦ The percentage of scheduled available
required resources; labor, material and man-hours to total available man-hours
services creating a schedule to execute ‘the over the specified time period. A world
right work at the right time’. The schedule is class target of >80% of man-hours
a contract between operations and should be applied to scheduled work.
maintenance. The ‘right work at the right It is not desirable to schedule 100% of
time’ implies that this work must be available man-hours within a schedule
executed within the specified time period to period, because we recognize that additional
achieve the desired level of performance. work will arise after the schedule has been
Failure to execute within the schedule period cast. This includes both emergency work
will increase the risk of failure. and other schedule write-ins that must be
accommodated during the schedule period.
With good work identification, planning and
scheduling in place, the weekly maintenance Work Execution
schedule should be produced several days
in advance of the beginning of the schedule Work execution begins with the assignment
period. There should be confidence that this of work to the people responsible for
schedule reflects the work that will be executing it and ends when the individuals
completed through the schedule period. charged with responsibility for execution
provide feedback on the completed work.
6. Quality of Scheduling
A key performance indicator for the
7. Schedule Compliance
scheduling function is:
With a high quality of work identification,
♦ The percentage of work orders, over the planning and scheduling, maintenance
specified time period, that have a resources should execute according to the
scheduled date earlier or equal to the plan and schedule. Therefore, a key
‘late finish or required by date’. A world performance indicator of execution is
class maintenance target of >95% schedule compliance. Schedule compliance
should be expected in order to ensure is defined as:
the majority of the work orders are
completed before their 'late finish or ♦ The percentage of work orders
required-by date.' completed during the schedule period
before the late finish or required by date.
A second measure of the quality of World class maintenance should
scheduling is: achieve >90% schedule compliance
during execution.
♦ The percentage of work orders assigned
“Delay” status due to unavailability of 8. Quality of Work Execution
manpower, equipment, space or
Work execution quality is measured by:
services over the specified time period.

Volume of Scheduled Work ♦ The percentage of rework. World class


levels of maintenance rework are less
The scheduling of properly planned work is than 3%.
also important to maximize maintenance
efficiency. We would anticipate that a high 9. Work Order Completion
percentage of the available maintenance The purpose of identifying maintenance
man-hours would be committed to a process key performance indicators is to
schedule. A second scheduling key help manage the maintenance process. The
performance indicator measures: ability to successfully monitor and manage
the process and measure the results of the
process is highly dependent on gathering

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correct information during work execution. should be reviewed and closed within 3
The vehicle for collecting this information is days.
the work order. Work orders should account
for ‘all’ work performed on assets. This is Performance Analysis
necessary to gather accurate maintenance
cost and history data, enabling the The performance analysis element of the
management of the physical asset through maintenance process evaluates
its life cycle. maintenance effectiveness by focusing on
key performance indicators of maintenance
A returned work order should indicate the results. Gaps between the actual and
status of the job (complete, incomplete), the required performance of the maintained
actual labor and material consumed, an asset are identified. Significant performance
indication of what was done and/or what gaps are addressed by initiating work
was found and recommendations for identification improvement actions to close
additional work. In addition, information the performance gap.
about process and equipment downtime and
an indication of whether the maintenance 11. Presence of Performance Analysis
conducted was in response to a failure
One indication that performance analysis is
should be provided.
being executed is the existence of the
maintenance result metrics described under
The idea that the job is not done until the
the next section of this paper entitled key
work order is completed and returned is a
performance indicators of maintenance
significant challenge to many organizations.
effectiveness (result measures).
For this reason it is also important to have a
key performance indicator on work order
12. Quality of Performance Analysis
completion. This metric should look at:
From a maintenance process perspective it
♦ The percentage of work orders turned in is important that these results are driving
with all the data fields completed. World action. Therefore, a key performance
class maintenance organizations indicator for performance analysis is a
achieve 95% compliance. measure of:

Follow-up ♦ The number of reliability improvement


actions initiated through performance
In the Follow-up element of the maintenance analysis during the specified period. No
process, actions are initiated to address the absolute number is correct but no
information identified during execution. number suggests inaction.
Some key follow-up tasks include reviewing ♦ A second measure is the number of
work order comments and closing out asset reliability actions resolved over the
completed work orders, initiating corrective last month. In other words, a measure of
work and initiating part and procedural how successful the organization is in
updates as required. performance gap closure.

10. Work Order Closure


Timely follow-up and closure of completed Key Performance Indicators of
work orders is essential to maintenance Maintenance Effectiveness (Result
success. A key performance indicator for Measures)
follow-up is:
The product of maintenance is reliability. A
reliable asset is an asset that functions at
♦ The percentage of work orders closed
the level of performance that satisfies the
within a maximum of 3 days, over the
needs of the user. Reliability is assessed by
specified time period. The expectation is
measuring failure.
that >95% of all completed work orders

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Failures ♦ The number and frequency of asset
failures by area of consequence. There
The primary function of maintenance is to is no universal standard for this metric
reduce or eliminate the consequences of because of the diversity of industries
physical asset failures. The definition of and even plants within industry
functional failure is anytime that asset segments. It is however reasonable to
performance falls below its required expect a downward trend and to set
performance. Therefore a key performance reduction targets based on current
indicator for maintenance effectiveness is performance levels and business needs.
some measurement of failure on the
asset(s). If the maintenance function is
effective, failures on critical assets and thus Maintenance Costs
their consequences should be reduced or
eliminated. Maintenance costs are another direct
measure of maintenance performance.
Failure consequence impacts manufacturing Maintenance costs are impacted by both
level key performance indicators. Failure maintenance effectiveness and the
classification by consequence identifies the efficiency with which maintenance is
contribution of maintenance function to performed.
manufacturing level performance. Maintenance maximizes its effectiveness by
ensuring that it performs “The Right Work at
Failure consequences are classified into the the Right Time”. Proactive maintenance
following categories: means intervening before the failure event
occurs. The impact of proactive
1. Hidden Consequence – there is no maintenance is not only to minimize the
direct consequence of a single point safety, environmental and operational
failure other than exposure to the consequences of failure but also to reduce
increased risk of a multiple failure (a the cost of maintenance by reducing
second failure has to occur to secondary damage. For example, if the
experience a consequence). potential failure of a pump bearing was
detected proactively, the catastrophic failure
2. Safety Consequence – a single point
of the bearing could be prevented. The
failure results in a loss of function or
catastrophic failure of the pump bearing
other damage which could injure or kill
would likely result in damage to the casing,
someone.
wear rings, impeller, mechanical seals, etc.
3. Environmental Consequence –a single The corrective repair would require an
point failure results in a loss of function extensive pump rebuild. Utilizing a proactive
or other damage which breaches any task such as vibration monitoring to detect
known environmental standard or the bearing deterioration permits the
regulation; scheduled replacement of the bearing prior
to the occurrence of secondary damage.
4. Operational Consequence – a single
Less secondary damage means that it takes
point failure has a direct adverse effect
less time to repair (labor savings) and
on operational capability (output,
consumes fewer parts (material savings).
product quality, customer service or
The overall effect is the repair costs much
operating costs in addition to the direct
less.
cost of repair).
5. Non-Operational Consequence – a Maintenance costs are also impacted by
single point failure involving only the increasing the efficiency of maintenance.
cost of repair. These efficiency gains are achieved through
improved planning and scheduling of “the
Therefore, it is important to track: right work at the right time”. Published data
suggests that companies with estimated
wrench times of 25% to 30% can increase

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wrench time to between 40% and 60% Through more formal work identification and
through better planning and scheduling. enhanced planning and scheduling
shutdown overruns should be minimized.
There are several useful maintenance cost
related measures: Useful key performance indicators
associated with asset downtime attributable
♦ Maintenance Cost: The target to maintenance are:
maintenance cost depends on the asset
and its operating context (how the asset ♦ Unscheduled downtime (hours)
is applied and used). ♦ Scheduled downtime (hours)
♦ Maintenance Cost / Unit Output: The ♦ Shutdown overrun (hours)
target maintenance cost depends on the
asset and its operating context (how the Note: It is useful to distinguish between ‘equipment
asset is applied and used). down’ where a specific piece of equipment is
unavailable and ‘process down’ where production has
♦ Maintenance Cost / Replacement Asset stopped.
Value of Plant and Equipment: This
metric is a useful benchmark at a plant The Importance of the Work Order
and corporate level. The world class
benchmark is between 2% and 3%. Implementation of the suggested key
♦ Total Maintenance Cost / Total performance indicators for the maintenance
Manufacturing Cost: This metric is a function requires a reliable source of data on
useful benchmark at a plant and asset failures, maintenance costs and
corporate level. The world class downtime. Any time maintenance is
benchmark is <10% to 15%. performed on an asset a record should be
♦ Total Maintenance Cost /Total Sales: kept. The vehicle for collecting this data is
This metric is a useful benchmark at a the maintenance work order.
plant and corporate level. The world
class benchmark is between 6% and Whenever maintenance is performed
8%. against an asset, work order completion
data should include the following
Maintenance Related Downtime information:

The maintenance function’s impact on asset ♦ Identification of the asset at the level in
availability is through minimizing downtime the asset hierarchy where the work was
attributed to maintenance. This includes performed.
both scheduled and unscheduled ♦ Date, time and duration of the
maintenance related downtime. A key maintenance event.
objective of proactive maintenance is to ♦ An indication if failure has occurred: yes
identify potential failures with sufficient lead- or no (no if proactive)
time to plan and schedule the corrective ♦ When failure has occurred, identification
work before actual failure occurs. If the of the failure consequence: {hidden,
maintenance function is successful safety, environment, operational
unscheduled maintenance related downtime (product quality, throughput, customer
will be reduced. service, operating costs) or non-
operational involving only the cost of
It is equally important to measure scheduled repair only}
downtime. The work identification element of ♦ actual costs (labor, materials, services,
the maintenance process strives to eliminate etc)
unnecessary scheduled maintenance by ♦ process downtime (loss of production)
focusing on only performing the ‘right work
♦ asset downtime (equipment out of
at right time’.
service but process still able to produce)
Queries in your computerized maintenance
management system can then be developed

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to track and report key performance
indicators for asset failure, maintenance
costs and downtime.

Reporting and Use of Key Performance


Indicators

Maintenance and reliability business


process metrics (leading indicators) provide
a clear indication of compliance to the
maintenance business process. They
indicate where to take specific action
because of a gap in the way maintenance is
being performed. This gap in the execution
of the maintenance process will ‘eventually’
lead to asset failure(s). The consequence of
these failures translates into poor
manufacturing performance.

These key performance indicators should be


aligned with defined roles and
responsibilities for the maintenance function
against the assets for which they apply.
For example, a planner responsible for ‘Area
A’ would be responsible for the planning
function key performance indicators for the
‘Area A’ assets.

The manager responsible for ‘Area A’ assets


would monitor all process and result metrics
for Area A. Each metric should roll up the
asset hierarchy, in alignment with individual
responsibility for the assets. Management
action is directed at improving compliance
with the requirements of Work Identification,
Planning, Scheduling, Execution and Follow-
up. In this way, the process is managed
leading to world class results. This logic is
repeated at each level of management in the
organization. At the plant and/or corporate
level, management is exercising
accountability for plant-wide maintenance
metrics, both process and results.

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Appendix 1: Summary of Maintenance Key Performance Indicators
Type of Measuring Key Performance Indicator World Class Target Level
Measure
Result
1 Cost Maintenance Cost Context specific
Lagging
Result Maintenance Cost / Replacement
2 Cost 2 - 3%
Lagging Asset Value of Plant and Equipment
Result Maintenance Cost / Manufacturing
3 Cost < 10 – 15%
Lagging Cost
Result
4 Cost Maintenance Cost / Unit Output Context specific
Lagging
Result
5 Cost Maintenance Cost / Total Sales 6 - 8%
Lagging
Result
6 Failures Mean Time Between Failure (MTBF) Context specific
Lagging
Result
7 Failures Failure Frequency Context specific
Lagging
Result Unscheduled Maintenance Related
8 Downtime Context specific
Lagging Downtime (hours)
Result Scheduled Maintenance Related
9 Downtime Context specific
Lagging Downtime (hours)
Result Maintenance Related Shutdown
10 Downtime Context specific
Lagging Overrun (hours)
80% of all work requests should be
processed in 5 days or less. Some
Percentage of work requests remaining
Process Work work requests will require more time
11 in “Request” status for less than 5
Leading Identification to review but attention must be paid
days, over the specified time period.
to 'late finish date' or required by
date.
Target for proactive work is 75 to
Percentage of available man-hours 80%. Recognizing 5 -10% of available
Process Work used for proactive work (AMP + AMP man-hours attributed to redesign or
12
Leading Identification initiated corrective work) over a modification (improvement work) this
specified time period. would leave approximately 10% -
15% reactive.
Percentage of available man-hours
Process Work Expect a level of 5 to 10% of man-
13 used on modifications over the
Leading Identification hours spent on modification work.
specified time period.
Percentage of work orders with man- Estimating accuracy of greater than
Process
14 Work Planning hour estimates within 10% of actual 90% would be the expected level of
Leading
over the specified time period. performance.
95% + should be expected. Expect a
Percentage of work orders, over the
Process high level of compliance for these
15 Work Planning specified time period, with all planning
Leading fields to enable the scheduling
fields completed.
function to work.
Percentage of Work Orders assigned
Process, “Rework” status (Due to a need for
16 Work Planning This level should not exceed 2 to 3%.
Leading additional Planning) over the last
month.
80% of all work orders should be
Percentage of Work Orders in “New” or possible to process in 5 days or less.
Process,
17 Work Planning “Planning” status less than 5 days, Some work orders will require more
Leading
over the last month. time to plan but attention must be
paid to 'late finish date'.
Percentage of work orders, over the 95%+ should be expected in order to
Process, Work specified time period, having a ensure the majority of the work orders
18
Leading Scheduling scheduled date earlier or equal to the are completed before their 'late finish
late finish or required by date. date.'
Percentage of scheduled available
Process, Work Target 80% of man-hours applied to
19 man-hours to total available man-hours
Leading Scheduling scheduled work.
over the specified time period.
Percentage of Work Orders assigned
Process, Work “Delay” status due to unavailability of This number should not exceed 3 to
20
Leading Scheduling manpower, equipment, space or 5%.
services over the specified time period.

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Type of Measuring Key Performance Indicator World Class Target Level
Measure
Percentage of Work Orders completed Schedule compliance of 90%+ should
Process, Work
21 during the schedule period before the be achieved.
Leading Execution
late finish or required by date.
Process, Work Percentage of maintenance work
22 Rework should be less than 3%.
Leading Execution orders requiring rework.
Percentage of work orders with all data Should achieve 95%+. Expectation is
Process, Work
23 fields completed over the specified that work orders are completed
Leading Execution
time period. properly.
Percentage of work orders closed Should achieve 95%+. Expectation is
Process, Work
24 within 3 days, over the specified time that work orders are reviewed and
Leading Follow-up
period. closed promptly.
No number is correct but level of
Number of asset reliability
relative activity is important. No
Process, Performance improvement actions initiated by the
25 actions being initiated when lots of
Leading Analysis performance analysis function, over
performance gaps exist is
the specified time period.
inappropriate.
Number of equipment reliability
Process, Performance improvement actions resolved, over
26 This is a measure of project success.
Leading Analysis the specified time period. (Did we
achieve performance gap closure)

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Appendix 2: Example of How Maintenance KPI’s Are Used
Maintenance Process Key Performance Indicators

Maintenance Results (Lagging) Key Performance Indicators


Maintenance Benchmarks
- Number of functional failures
1) Total
2) Sub-total by Failure Consequence
- Maintenance Cost / Unit Output
Hidden
Safety
- % Maintenance Cost / Replacement Asset Value Environmental
Operational
- % Total Maintenance Cost / Total Manufacturing Cost Quality
Output
- % Total Maintenance Cost / Total Sales Customer Service
Operating Cost
Non-Operational (only cost of repair)
- Maintenance related downtime
1) Unscheduled downtime (hours)
2) Scheduled downtime (hours)
Note: Key performance indicators are summarized and 3) Shutdown overruns (hours)
reported for all assets at the level of organizational - Maintenance cost
responsibility . 1) Total maintenance cost

Work Identification Work Planning Work Scheduling Work Execution Follow-up Performance Analysis

- % work orders - trend number of


- % planned work - % work orders with - % work orders
- % proactive work completed during the asset reliability
a scheduled date closed within x days
- % work orders with schedule period improvement actions
- % improvement less than or equal to
labor estimates (schedule initiated
work 'required by' date.
- % work requests in within 10% of actuals compliance)
- track number of
request status < x - % work orders - % of scheduled - % rework asset reliability
days requiring rework due available man-hours improvement actions
to total available - % of work orders resolved
to planning
man-hours with alll work order
- % work orders in completion data
planning status < x - % work orders fields completed
days assigned 'delay'
status due to the
unavailability of
manpower, materials,
equipment, space or
services

Maintenance Process (Leading) Key Performance Indicators

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