Managing Maintenance with Key Performance Indicators - Not an Option

 Managing Maintenance with Key Performance Indicators - Not an Option

“It is not possible to manage what you cannot control and you cannot control what you cannot measure!” (Peter Drucker)  

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.

The maintenance process is made up of elements. All elements are required to complete the supply chain. Key performance indicators of the maintenance process are process assurance measures. They answer the question ‘how do I know that this maintenance process element is being performed well?’ The day-to-day execution of maintenance is addressed through the seven elements of the Reliability Process; Business Focus, Work Identification, Work Planning, Work Scheduling, Work Execution, Follow-up and Performance Analysis. Key performance indicators for each element are recommended.

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.

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 key performance indicator measuring it. 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?”

Key performance indicators for the maintenance function need to include both leading (maintenance process) measures and lagging (result) measures. This paper focuses on identifying both leading and lagging measures of maintenance performance. Collectively, these measurements are the key performance indicators for the maintenance function.

Examples of Maintenance Functions and Measuring Performance

• The percentage of work orders completed during the schedule period before the late finish or required by date. World class maintenance should achieve >90% schedule compliance during execution      
• Work execution begins with the assignment of work to the people responsible for executing it and ends when the individuals charged with responsibility for execution provide feedback on the completed work.     
• Work execution quality is measured by:   
• The percentage of rework. World class levels of maintenance rework are less than 3%.     
• Preventive Maintenance Effectiveness is measured by comparing the "% of PM Labor Hours to % of Emergency/Urgent Labor Hours"

 Basic Steps to Success: (not optional if you want success-ask people who have followed this message)

• "One must understand bad numbers are acceptable, what is not acceptable is doing something about these bad numbers" (patience is a requirement and not an option)

Let's start simple and prove success:

• Percent of emergency/urgent labor hours divided by total labor hours available. (trend on line graph and post in shop)     
• PM Compliance and PM Effectiveness must be compare to each other. 

• PM Compliance (search for "10% Rule of PM on internet")                  
• % of PM Labor Hours completed within 10% of the time estimate             
• PM Effectiveness                
• % of Production Throughput or OEE increase 

Patience is a requirement, measure what you manage is a requirement, post these measurements for all to see and discuss with maintenance techs weekly.  Begin the conversation today!  If you need a coach I am here for you. If I am to be your coach here are a few things I require: (email: [email protected])

• Be aware change is not easy or everyone would be doing it.     
• Share your metrics with me.     
• Be prepared to engage your production partner at some point. Let's show a little success first. 

 Good luck my friends and my success be in your future.

 

The Author: Ricky Smith CMRP, CMRT, CRL

 

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