Maintenance Productivity and Performance Measurement

There are several examples when lack of necessary and correct maintenance
activities have resulted in disasters and accidents with extensive losses.

It is important that the performance of the maintenance process be measured,

so that it can be controlled and monitored for taking appropriate and
corrective actions to minimize and mitigate risks in the area of safety, meet
societal responsibilities and enhance the effectiveness and efficiency of the
asset maintained.

Requires cascading down the corporate objectives into measurable targets up

to shop floor level.

A measure commonly used by industries is the maintenance performance for

measuring the maintenance productivity.

Improvement in maintenance productivity can be achieved through reduction

in maintenance materials as well as reductions in projects, outages and
overhaul savings.
The performance measurement can be viewed along three dimensions

(1) effectiveness: satisfaction of customer needs,

(2) efficiency – economic and optimal use of enterprise resources and

(3) changeability – strategic awareness to handle changes.

Maintenance productivity aims at minimizing the maintenance cost dealing

with the measurement of overall maintenance results/performance and

maximizing the overall maintenance performance.

Some of the important measures of maintenance productivity are:

• Total cost of maintenance/total production cost;

• A (availability) = (planned time - downtime)/planned time;

• P (production rate) = (standard time/unit)x(unit

produced)/operating time;
where; operating time = planned time – downtime;

• Q (quality rate) = (total production – defective quantity or

number)/total production;

• Mean time to repair (MTTR) = sum of total repair time/number of

breakdowns;

• Mean time between failure (MTBF) = number of operating

hour/number of breakdowns;
• Maintenance breakdown severity = cost of breakdown
repair/number of breakdown;

• Maintenance improvement = total maintenance manhours on

preventive maintenance jobs ÷ total manhours available;

• Maintenance cost per hour = total maintenance cost/total

maintenance man hours;

• Man power utilization = wrench time/total time;

• Manpower efficiency = time taken/planned time;

• Material usage/work order = total material cost/number of

work order; and

• Maintenance cost index = total maintenance cost/total

production cost.
Kaizen
Refers to the philosophy of continuous improvement.
Kaizen involves all levels of an organization—both management and
workers.
Kaizen focuses on processes rather than results. Organizations that
practice Kaizen establish a culture in which workers have an awareness
of areas for improvement and are not afraid to identify them.
Kaizen vs Innovation
• Kaizen change is gradual; innovation is abrupt.
• Kaizen involves many workers in an organization; innovation involves
only a few.
• Kaizen promotes group thinking; innovation typically relies on
individualism.
• Kaizen improves; innovation replaces with new.
• Kaizen requires little initial effort followed by a larger effort to
maintain; innovation requires a large initial effort followed by a smaller
effort to maintain.
 Process-Oriented Versus Results-Oriented
Contrast between P-criteria and R-criteria can be found in
how organizations establish and conduct their employee
suggestion system or where used, quality control circles
(QC circles). In companies practicing Kaizen, QC circles are
essentially a group form of the employee suggestion
process. A process-oriented approach will establish goals
and rewards that focus on the parameters that lead to
success. These parameters relate to effort—for example,
the number of staff involved, frequency of the meetings,
and so on. A results-oriented approach, by contrast, will
look primarily at the outcome of the suggestion process of
QC circles in terms of bottom line performance indices.
Management in a company that practices Kaizen will be
actively engaged in evaluating and rewarding the staff at
all levels.
Kaizen Implementation Examples
The Topy Ayase Works is a 600-worker facility that manufactures
automobile wheels. In the 1980s, management began to focus on
improving the reliability of the 800 production machines used in the
factory. The main elements of the program were 1) expanding PM
activities to be the responsibility of production workers, not just
maintenance staff, 2) improving maintenance workers’ problem-
solving skills, and 3) improving production engineering in areas of
tool design and replacement procedures.

Extensive in-house training of production staff in the areas of basic

maintenance skills. Next, a rigorous housekeeping effort was
launched. The benefits of improved housekeeping include expanded
opportunities to detect equipment degradation during the cleaning
tasks and ease of detecting degradation due to increased cleanliness.
A side benefit of the housekeeping effort was increased safety and
worker respect for the equipment.
Breakdowns causing production line stoppage decreased from
1000 to 200 incidents per month. Oil leakage was reduced by
a factor of five. Labor productivity increased by 32%, cost of
defective parts decreased by 55%, and tool replacement time
was reduced by over 50%.
Maintenance staff was now able to devote time to higher-level
activities such as diagnostics and leveraging their skills by
conducting training of the machine operators.