St Developing Performance Indicators for Managing Mal What their needs are, and how to meet those needs ina manner ‘hat is cost effective for the entire company. Unless customer service is the focus, untold problems develop with ‘adversarial relations between the customers and the inventory and pur- ips. It is only when the customers’ needs are the focus that ‘an organization can overcome this problem, Chapter 5 Work Order Systems ‘The work order system is the information system for the mainte- ion, Without the d to record all of the ies on a work order, the organization does not have the data ‘o perform any meaningful analysis on its policies and practices, or, ‘more importantly, on the equipmei hout a work order system, nance activities. impossible to plan and sched- MONITORING WORK ORDER SYSTEMS. Consider a customer order for a product. This order is transferred to internal company documents, where the 8 tof with changing priorities would be chao! ‘when attempting o plan, schedule, and, ul thout the control docume: s quickly become too chaot The following indicators monitor the work order sys set of indicators monitor the planning and scheduling ac 1. ToTAL MAINTENANCE Lapor REPORTED TO A WorK ORDER ‘This indicator checks the accuracy of the maintenance labor report- ing. It compares the maintenance department labor records to the Tabor records for the same time period, Th56 Developing Performance Indicators for Managing Maintenance “d on the work order, then the labor component of the lory is suspect, Maintenance Labor Costs on Work Orders * Mirrlenance Labor Costs on Work Orders * Total Maintenance Labor Costs n some of the maintenance labor ing posted to the work order. is above 100%, then some of the maintenance charged, se range; ‘accuraney can be tracked over a rolling twely Strengths Work Order Systems 7 2. TOTAL MAINTENANCE MATERIAL Costs REPORTED TO A Work Orpen id reporting of the materials component \e previous indi ere are any g: collection and reporting the impact on the equipment history accuracy ean also be seen Maintenance Material Costs on Work Orders* ‘Maintenance Material Costs on Work Orders* Tolal Maintenance Mate I the percentage is 1 to the equi Strengths58 Performance Indicators for Managing Maintenance 3. Totat Maintenance Contract Costs Reported TO 4 Work Orpen to check the accuracy of the maintenance con- ince department contractor 1 Contractor records samme time period. This bor and mat then this componer t Costs on Work Orders Toial Maintenance Coy some of the contractor costs 00%, then the contractor cost records Considered accurate, The resulting informa history is also accurate. ‘ed on a Weekly or mor auiside these ranges. Trends can be tracked ove oe Work Order Syste 9 msm pricing ean cecur or the decison may ‘made to bring the particular job back in-house Weaknesses indicator has no weakness If the data utilized is accur 'S an effective management tool for contractor evaluation Wwntime records period. Any recording trying to use the data to influ. ence equipment repair or replacement decisions, Maintenance Downtime on Work Orders * Tolal Maintenance Downtime Charged 100%, then the dow accurate, The tory is also accurs60 Hors for Managing Maintenance its and not recording ions. The in be utilized to Common reports look at the top tecorded downtime equipment Such reports allow the maintenance department to eon problem equipsent Weaknesses performance. I or the teamwork required for a successful operation A 5. MAINTENANCE Lason Cosrs CHARGED To A StaNDING OR BLANKET Oren ‘hecks the amout 8 charge code or charged to a the costs and related info ‘make further analysi inf nee labor cos duction de 1 preventing excess! recommended. ' Percentage of work charged tos Work Order Systems 6 Start 10 develop the bad. Weaknesses There is no real weakness 6. MateRiats Costs CuarceD 10 STANDING OR BLANKET Work Oren (© a standing work order, landing Work Order * I Costsing et 10 avoid wri Prevents recording speci ‘material usage and makes future anal Tolal Charges for a Specific Equipment iiem windows of twelve month time period. indicator is essential for preventing excessive blanket work orders, tions develop t Weaknesses ‘There is no real weakness to 8. Wonk Distunution ay Type oF Work Oroen 1 Work distribution for an series of categ, orders. Some or; work should be about 40%, and t uled) should be about 4 Emergency Orcers T Tolal Work Oraers Work Order Syst ‘These indicators are deri rials, and contractor) for a spet charges for all types of work do ‘The indicator is most eff 've when displayed g bie chart on a weekly basis nasa bar chart on a Wve steps to prevent anced work distribution, real Weakness to this indicato the work order system does,j m efficiencies through be ion of resources. Howev Availability of the equi he emphasis on Jean facturing, the need for Ht design rat intenance a schedule ‘and contro 1g maintenance. 9. MAINTENANCE Work Onpens PLANNED 1 moni i planned. Planned work the ing these elements can result Also, the dos HY 10 plu a {he amount of time spent performing the kes an hour to plan a job and only by pecntlens? Maintenance Work Orders Planned “a 1 WP Total Work Orders Received al number of work orders ‘number of work orders received, This end . Work Order Systems 6s i trends. Some jobs, Some departments S may have a lower perc 10 have a the be mf ona weekly \dicator sho basis, and then charted on a rolling turing that the proper level of main- are being planned. Weaknesses The weakness o| nce their costs are a prop. Costs, and instead focuses on ing the i and even planners can reveal ‘may have a lower percentage of ing trends. 8 ined jobs. Some departMenance Fa iulete. This indicator will provide a manager ies for improvement in the pl tenance jihe indicator should be tracked on a weekly basi nal then charted with a rolling si relve month window, Weaknesses The weakness of this indicator is ing the results Planning 100% of 100 low a per: ‘centage show: Wl the resulting high costs that go be carefully understood to he useful, 11. MAINTENANCE MarERIAL Costs PLanwep ator parallels the last indicator. However focuses fe and pi osts are considered planned and should be Maintenance Material Costs Planned * Tolal Maintenance Matenals Cosig The indicator is de Work Order sy Strengths ocy Developing Performance Indicators for Managing Maintenance 13. Overtime tor of the planni ng program measures a company’s overtime. In many orga- nizations, overtime is worked in response to poor planning and sched. uling. In other cases a high level of overtime compensates for a short. € is not recommended and should be tored. Excessive overtime can have an impact on the eff- workforce. High overtime rates can indicate of a problem * Hours Worked as Overtime * Total Hours Worked Strengths This indi valuable for insuring that no excessive mainte- nance overtime is being utilized, Weaknesses This indicator has no major weakness, i$ a an indicator, is recommended 10 all 14. PLANNING COMPLIANCE nance Schedule would have a direct imp operations schedule. In organizations without this indi ‘Total Hours Estimated on Scheduled Work Orders ‘Total Hours Charged to Scheduled Work Orders ‘The indicator is derived by dividing the ‘work orders on the weekly schedule by the actual time needed to perform This indicator is valuable for insuring nance schedule, Weaknesses is recommended to all organizations using an integrated schedule. Itis also advisable for any organization to use as a performance check on scheduling accuracy, 15. Work Onpers ComPLeTeD WITHIN 20% OF PLANNED Lazor This indicator checks the accuracy of t at least three levels, ‘The planner’ planner’s ice: Were any discrepancies due to the or knowledge? or knowledge? n's performanc: Were any discrepancies due to the craft technician's lack of skills or performance? indicator is valuable for insuring the accuracy of the mainte- hance schedule.70 Developing Perfo Weaknesses ‘There is no major we 16. Work Onvers Compieten witHin 20% oF PLANNED MarERIAL Costs, |. This indicator is useful for mi least three levels. They are: planner’s lack of knowledge or ski ‘The supervisor's (or coach's any discrepancies due to performance? tor is used to track probler id job. Most cc with a goal ‘1 narrow the margin to 10%% as the orga- becomes more efficient, Number of Work Orders Completed Greater than 20% of E Total Number of Maintenance Work Orders Work Order Systems n 17. Work OnveRs Overoue This indicator checks the When a work order is i to finish the work four weeks. eeps the backlog current and prevents a per- ceived lack of responsiveness on the part of the maintenance org k orders overdue. Although is dif lower percentages indicate a better performance by the maintenance organization, NS dbades Work Orders Overdue* Tolal Work Orders This indicator is derived by dividing the number of overdue (exceeding th of work orders. The perc: erformed in a timely fas! Strengths Th ible for ance department, Weaknesses There is no major weakness all organizations trying to Poor Incomplete Low Pat Schedule Data Program Practices || Recorded Indicators Trsuti Stating to Record Data Low inventory Procurement Indicatorsn Work Order Problems ———_____Work Order Problems me-thitd of the maintenance organi- work order performance, Why is the sat- ‘© low? Below are the common reasons for poor work order, planning, and scheduling satisfaction: Low PM Program Indicators Although it may seem unlikely, the poor performance of the preven- tenance program is the leading cause of a poor work order sys. tem, Strong preve; nance pr reduce the amount of der sys- le if any analysis. The preventive 1 nance prograi than 20% of al any work order system or planning and Low Inventory and Procurement In This cause of work order problems one. Unless the inventor when it ble, out of stock, or ed to perform work, ind the c oa Inck of trust in the Iways receive adequate train- ing and have refresher training as needed to remain effective. is not valued, la necessary and. sand lead to the ul ed to the value of is collected and the work order syst be used to m into pau The organization Cial information to make value-ba: decisions,"4 Developing Performance icators for Managing Maintenance Poor Scheduling Practices The lack of organizational discipline to adhere to the schedule is based on several factors, Firs, the schedule may not be accurate due to. nportant. This prac re of the sched sly been accepted, the org: rall product uling practice fails. There must be commitment to the schedule at all levels in the organization for it to be successful Insufficient Staff To Record Data ‘The current trend of dovensizing organiza staff to record data Sine a is reduced to the it doesn’t have the resources to collect the data, much less analyze it. Thus, mat tent technical component of an organi overall competitiveness of a company is reduced, Inthe long term, the Company may not be a viable business. Proper appreciation of the cost benefits delivered by tenance and engineering groups must be developed in all org ‘That appreciation begins with education, Chapter 6 Computerized Maintenance Management Systems ‘The Computerized Maintenance Management Syst in real MMS. PREDICTIVE MAINTENANCE PREVENTIVE WORK [contaacton MAINTENANCE, ORDER EQUIPMENT HISTORY LABOR STORES REBUILDS PURCHASING