Maintenance Management

KEY PERFORMANCE INDICATORS:

Measuring and Managing the Maintenance
Function

It is not possible to manage what you cannot control
and you cannot control what you cannot measure!
(Peter Drucker)
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Presented by:
Raghavee Goel
(Roll no : 14)
Shivangi Kejriwal
(Roll no : 20)
Shubham Aryan
(Roll no : 21)

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Introduction
Performance measurement is a fundamental principle of
management.

The measurement of performance is important because it identifies
current performance gaps between current and desired performance
and provides indication of progress towards closing the gaps.

Carefully selected key performance indicators identify precisely
where to take action to improve performance.


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Physical Asset Management
To achieve this performance there are three inputs to be managed.

Design practices
Operating practices
Maintaining practices

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Figure 1: Managing manufacturing performance
requirements to meet customer needs

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The Asset Reliability Process
A proactive Asset Reliability Process, represented by the seven elements
in the model aims to deliver the performance required by the enterprise
to meet all of its corporate objectives.

1. Business focus
2. Work identification
3. Planning
4. Scheduling
5. Execution
6. Follow up
7. Performance analysis

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Figure 3: The Asset Reliability Process identifies what's required to
manage the maintenance function.
KPI for the elements
Element: Work Identification
Work requests
Proactive work

Element: Work Planning
Amount of planned work
Responsiveness of planning
Quality of planning


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Element: Work Scheduling
Quality of Scheduling

Element: Work Execution
Schedule compliance
Quality of work execution
Work order completion

Element: Follow-up
Work order closure
Presence of Performance Analysis
Quality of Performance Analysis


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KPI for maintenance
Effectiveness (Result measures)
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1. Maintenance Related Downtime: Useful key performance
indicators associated with asset downtime attributable to maintenance
are:

Unscheduled downtime (hours)
Scheduled downtime (hours)
Shutdown overrun (hours)

2. Maintenance costs: There are several useful maintenance cost
related measures:

Maintenance Cost: The target maintenance cost depends on the asset and its
operating context.
Maintenance Cost / Replacement Asset Value of Plant and Equipment: This
metric is a useful benchmark at a plant and corporate level. The world class
benchmark is between 2% and 3%.
Total Maintenance Cost / Total Manufacturing Cost: This metric is a useful
benchmark at a plant and corporate level. The world class benchmark is
<10% to 15%.
Total Maintenance Cost /Total Sales: This metric is a useful benchmark at a
plant and corporate level. The world class benchmark is between 6% and
8%.
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3. Failures: Failure consequences are classified into the following
categories:

Hidden Consequence : There is no direct consequence of a single point
failure other than exposure to the increased risk of a multiple failure.
Safety Consequence : A single point failure results in a loss of function or
other damage which could injure or kill someone.
Environmental Consequence: A single point failure results in a loss of
function or other damage which breaches any known environmental standard
or regulation
Operational Consequence : A single point failure has a direct adverse effect
on operational capability.
Non-Operational Consequence : A single point failure involving only the
cost of repair.

Case study: Scottish power
To deliver the process safety management system, and specifically to
establish a comprehensive set of leading and lagging process safety
performance indicators, Scottish Power followed guidance in HSG254.

A multi-functional team from the business followed the six-stage
approach in HSG254 to identify 90 hazards and the 42 risk control
systems (or protective barriers) that are required to manage these
hazards. The team then reviewed each risk control system to identify one
or more leading indicators, crib sheets were used to capture detailed
specification for each KPI.

In total 88 leading indicators were identified across all risk control
systems. case-study-scottish-power.pdf
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Advantages of KPI
KPIs show an organization where it is going wrong, enabling
management to make the necessary changes to turn things around.

KIPs give an organization an edge over its competitors.
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Disadvantages
KPIs can be expensive to use, or even impossible (you cannot
quantify staff morale, for example)

KPIs have limitations to the exactness of results, which often may be
a rough guide rather than a concentrate measurement.

Once designed, KPIs can be difficult to change unless you are
prepared to disregard carefully built-up comparison yardsticks.

KPIs may be difficult to compare among peers- competitive analysis
may be best left to an external specialist.
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Bibliography
Article:
Key performance indicators Measuring and Managing the Maintenance
Function, November 2005 written by Al Weber Reliability Consultant, Ivara

Internet:
http://management.about.com/cs/generalmanagement/a/keyperfindic.htm
http://www.investopedia.com/terms/k/kpi.asp
www.qfinance.com/performance-management-checklists/understanding-key-
perfomance-indicators#top


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Thank you
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