Maintenance Management: Key Performance Indicators: Measuring and Managing The Maintenance Function

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)
2
Presented by:
Raghavee Goel
(Roll no : 14)
Shivangi Kejriwal
(Roll no : 20)
Shubham Aryan
(Roll no : 21)
3
• 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.
Introduction 4
To achieve this performance there are three inputs to be managed.
• Design practices
• Operating practices
• Maintaining practices
Physical Asset Management 5

Figure 1: Managing manufacturing performance
requirements to meet customer needs
6
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
The Asset Reliability Process 7

Figure 3: The Asset Reliability Process identifies what's required
to manage the maintenance function. 8
• Element: Work Identification
 Work requests
 Proactive work
• Element: Work Planning

 Amount of planned work
 Responsiveness of planning
 Quality of planning
KPI for the elements 9

• 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
10
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)
KPI for maintenance Effectiveness

(Result measures) 11
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%.
12
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.
13
• 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
Case study: Scottish power 14

15
• 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.
Advantages of KPI 16
• 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.
Disadvantages 17
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
Bibliography 18
Thank you  19

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Maintenance Management

KEY PERFORMANCE INDICATORS:

• The measurement of performance is important because it identifies

• Carefully selected key performance indicators identify precisely

Physical Asset Management 5

The Asset Reliability Process 7

• Element: Work Planning

KPI for the elements 9

• Element: Work Execution

 Unscheduled downtime (hours)

KPI for maintenance Effectiveness

 Hidden Consequence : There is no direct consequence of a single point

• A multi-functional team from the business followed the six-stage approach

Case study: Scottish power 14

• KIPs give an organization an edge over its competitors.

• KPIs have limitations to the exactness of results, which often may be

• Once designed, KPIs can be difficult to change unless you are

• KPIs may be difficult to compare among peers- competitive analysis

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