MaintenanceKPIs TheTrue Story

TheKeytosuccess

KPIs
KeyPerformanceIndicators definition Key yPerformance f Indicators (KPI)arefinancial f andnonfinancialmeasuresormetricsusedto panorganization g define f andevaluatehow help successfulitis,typicallyintermsofmaking progress p g towardsitslong gtermorganizational g goals
Source Wikepedia

WhyMeasureKPIs
SothatIcanmanage Ihavetohandinmy yreports p Myannualraisedependsonit OurcompanyisheavilyintoKPIs Notsure itwasstartedbeforeIgothere

Whyshouldwemeasure?
Thepurposeofmeasuringistogather relevantinformationtoenablemanagersto makemoreinformeddecisionsanddrive continuousimprovementinsupportof corporategoals

Theresultsofmeasuring
Theconsequenceofmeasuringshouldbe change.Achangeinprocedure,achangein knowledge,achangeinexpectationsandmost importantlyachangeinbehavior. Theconsequenceofmanagingshouldbethat g isintheright g direction. thechange

CreatingKPIs
Company Strategy

C iti lsuccessfactors Critical f t

KeyPerformanceIndicators

Wh tdo What d wemeasureagainst? i t?

Worldclassstandard Bestinclass Industry d standards d d Otherplantswithintheorganization Whodobestinclassmeasureagainst? Themselves

Wh tifweget What titwrong

HMSTitanic i i 1912
THE NATIONAL CRUISE SHIP ORCHESTRA OF THE YEAR 1911

Howtogetitrightexamples
Foroneflexiblepackagingcompanythestart ofLeanmanufacturing Thisledtotheneedforlowerinventoryand wasterawmaterialandthePlantwascharged withreducingit TheMaintenanceKPIforthatyearwasWeb Web Breaks

Howtogetitrightexamples
OnePaperCompanywantedtobetheshort order/shortdeliverytimesupplier AtthePaperMilltheamountofseconds producedwasabig p gissue ThemaintenanceKPIwasAvailabiltyof SteamBox, Box CalenderRollsandRiderRoll Roll

Howtogetitrightexamples
Alar large eSteelcompan companywanted antedtobethe EmployerofChoicebuttheyhadtrouble retainingpeople AtmostoftheirintegratedSteelMillthey weresubjecttofinesfortheirsafetyviolations and moreimportantly peopleweregetting hurt. ThemaintenanceKPIwasNumberofJSA completed

Howtogetitrightexamples
AHighprofilebeveragecompanysnumber1 annualcustomercomplaintwasfailingouter wrap.Thiswasfromstoresandpublic. ThePlantwastoldbluntly yithadtostop p MaintenanceKPIwasfunctionalfailuresofthe outerwrapmachine

CommonMeasures
MeanTimeBetweenFailures(MTBF) TotalhoursinthetimePeriod NumberofFailures

CommonMeasures
MTBFexample Aquarrytruckisrequiredtorunforaneight hourshift itaverages16failuresashift thereforMTBF= 8 = 1=30minutes 162 Thiswouldleadtheoperations p schedulerto believethathecanrelyonthetruckforonly 30minutesatatimeandscheduleother trucks k accordingly d l

CommonMeasures
MTBFexample Butifwelookatthedistributionoffailures
Hours12345678 Failures00000088

ittellsadifferentstory.Furtheranalysis showedthetruckwasoverheatingafter6 hours repairsweremadetothecooling systemandthetruckdelivered100%

CommonMeasures
MTBF LookingatMTBFinisolationcanbe misleadingastheexampleillustrates.Italso doesntdifferentiatebetweena5minutestop tomakeadjustmentsbecauseofTPManda threehourbreakdown.Itisagoodindicatorof whetherthingsaregettingbetterwhenused inconjunctionwithothermeasures

CommonMeasures
MeanTimeToRepair(MTTR) TotalDowntimeCausedByFailures NumberofFailures

CommonMeasures
MTTRexample Atasteelmill,maintenancewerep proudto showthattheyhadbeenabletoreduce thetimeittooktoreplacefaileddrive motorsinonepartofthemillfrom6hours to2hours.

CommonMeasures
MTTRexample(contd.) (contd ) Theysaidtherewasinstantpaybackonthe equipment i b bought h tod dothis, hi asthey h were changingmotorseverymonth

CommonMeasures
PMCompliance PMscompletedwithintimeframe PMsscheduled
Should h ldbe b used dinconjunctionwith hthe h availability l b l of fthe h equipmentthatisincludedonthePMandtheoccurrencesof thefailuremodethePMismeanttoaddress

PMs PM
OK OK

OKAY

PMs PM
TogetusefulinformationoutofPMs, PMs they shouldrequiretheinspectortoprovidea quantativemeasurewhereverpossible possible.It shouldalsocontainacceptablelevelsand informationonwhattodoifthereadingsare outsidethoselevels. Its It sdifficulttotrendcheckmarks

P People l D Development l tKPI KPIs

Training Therearetwopopularmeasurements Totalamountspentontraining Totalnumberofemployees and d Totalhourspentontraining Totalnumberofemployees

P People l D Development l tKPI KPIs

Training Howevernoneofthesemeasuresaddressthe suitabilityoreffectivenessofthetraining training. Assumingthatameasurehasbeenusedto establishtheneedforaparticulartypeof trainingabettermeasurewouldbe:

P People l D Development l tKPI KPIs

Training Downtime i hours h for f failure f il after f training i i Downtimehoursforfailurebeforetraining

WhattypeofKPIsdoyouwant
Sometimes Tried Until Proven Ineffective Duh!

WhattypeofKPIsdoyouwant
Or S trategic g T elling A pplicable R eplaceable,renewable,reviewable(Dynamic)

TheonetruismaboutKPIs
KPIs,goalsetcwilldrivebehaviour

Makesureits it stheoneyouwant!

TheonetruismaboutKPIs
AtapapermillitwasdecidedthatOvertime costswouldbeusedasaKPI.Inthe maintenancedepartmentitwasnotedthat theTruckRepairareawastheworstoffender averaging30%wheretherestofmaintenance wasat10%

TheonetruismaboutKPIs
Thetruckdepartmentwasmannedby2truck mechanicsonthedayshiftwhorespondedto callsontheoffshifts.Thesolutionwassimple, onemechanicwasscheduledontotheafternoon shift,reducingtherelianceonovertimeby50%

TheonetruismaboutKPIs
When h after f 3months h the h overtimenumber b camedownto12%inthetruckdepartment,it wasdeclaredasuccess success. However,inthefourthmonththemillwas shutdownfor10hoursontwooccasionsdue tonotrucksbeingavailabletoloadthe conveyorsthatfedthepapermachine. machine

TheonetruismaboutKPIs
Thedowntimeatthemillwascostedat $200/minute,totaling$240,000 morethan4 timesthewagesofatruckmechanic.It transpiredthatthejobsthatnormallytook2 mentodowereleftasideuntiltherewerenot enoughtruckstokeepthemillrunning.

Wrapup
Thereisnocookiecutterapproachto measurements.Theyshouldbedrivenbythe Corporatestrategyandgovernedbythe culturewithintheorganization.Thisshould resultinthebehaviorandresultsyouneed GoodLuck!