Maintenance Performance MeasurementsMaintenance Performance Measurementsby by

Maintenance Performance MeasurementsMaintenance Performance Measurementsby by

Salih DuffuaaSalih DuffuaaProfessor of Industrial Engineering and Professor of Industrial Engineering and

Operations ResearchOperations Research

OutlineOutlineOutlineOutline

• Introduction to Performance Measures (PM)Introduction to Performance Measures (PM)• What is MPWhat is MP• Role of PMRole of PM• Application and Use of PMApplication and Use of PM

• Characteristics of Good MeasuresCharacteristics of Good Measures• Approaches for developing measures.Approaches for developing measures.• Maintenance Performance MeasuresMaintenance Performance Measures

• Output Measures.Output Measures.• Input measures.Input measures.• Within the system MeasuresWithin the system Measures• PM selection.PM selection.

• Concluding remarks.Concluding remarks.

Role of Performance Measures (PM)Role of Performance Measures (PM)Role of Performance Measures (PM)Role of Performance Measures (PM)

• Assess current situation.Assess current situation.

• Monitor and track performanceMonitor and track performance

• Launch Continuous improvement.Launch Continuous improvement.

• Strategic planning implementation.Strategic planning implementation.

Characteristic of PMCharacteristic of PMCharacteristic of PMCharacteristic of PM

• Relevance:Relevance: Include data that are essential to provide Include data that are essential to provide a basis for understanding the accomplishments of a basis for understanding the accomplishments of goals and objectives of the organization.goals and objectives of the organization.

• Interpretability:Interpretability: Interpretability refers to the ease Interpretability refers to the ease with which the intended audience can understand and with which the intended audience can understand and use the information generated by the measure. use the information generated by the measure.

• Timeliness:Timeliness: Report in a timely manner so that it will Report in a timely manner so that it will be available to users before it loses its value in be available to users before it loses its value in making decisions.making decisions.

Characteristic of PMCharacteristic of PMCharacteristic of PMCharacteristic of PM

• Reliability:Reliability:. A measure is reliable if, when repeatedly . A measure is reliable if, when repeatedly

applied to the same conditions, the same result is applied to the same conditions, the same result is obtained a high proportion of time. obtained a high proportion of time.

• Validity:Validity:. Validity is the extent to which the measure . Validity is the extent to which the measure accurately represents the quality being assessed. accurately represents the quality being assessed.

Outcome Based ApproachOutcome Based ApproachOutcome Based ApproachOutcome Based Approach

• It is essential to have a system by which to assess the It is essential to have a system by which to assess the Maintenance progress towards achieving its Maintenance progress towards achieving its objectives, mission and vision. objectives, mission and vision.

• Identify what outcomes/output are implied by the Identify what outcomes/output are implied by the

mission, vision and value statements.mission, vision and value statements.

• Identify the key activities/processes that support the Identify the key activities/processes that support the

outcomes?outcomes?

Balance Scored CardsBalance Scored CardsBalance Scored CardsBalance Scored Cards

• Customer – StakeholdersCustomer – Stakeholders

• Process.Process.

• Financial.Financial.

• People learning and development People learning and development

Objectives Based MeasuresObjectives Based MeasuresObjectives Based MeasuresObjectives Based Measures

• Develop a set of measurable objectives if achieved Develop a set of measurable objectives if achieved will ensure the achievement of the mission and will ensure the achievement of the mission and vision.vision.

• For each objectives develop a set of measures that For each objectives develop a set of measures that assist in checking whether the objectives is achieved.assist in checking whether the objectives is achieved.

• Theses measures can be broken down in BSC Theses measures can be broken down in BSC framework ( Stakeholder- Financial- Process and framework ( Stakeholder- Financial- Process and Learning and growth).Learning and growth).

Strategic Factors ApproachStrategic Factors ApproachStrategic Factors ApproachStrategic Factors Approach

• Strategic factors are those things that your Strategic factors are those things that your organization or business units needs to get right in organization or business units needs to get right in order to succeed with your key stakeholders, that is order to succeed with your key stakeholders, that is your customers, suppliers, employees, owners, and your customers, suppliers, employees, owners, and any other organization, business unit or individual any other organization, business unit or individual that depend on for success. The stakeholders use that depend on for success. The stakeholders use these criteria to evaluate you.these criteria to evaluate you.

Example of Strategic FactorsExample of Strategic FactorsExample of Strategic FactorsExample of Strategic Factors

• Product qualityProduct quality• Range of productsRange of products• Price Price • ImageImage• Customer serviceCustomer service• AccessibilityAccessibility

You develop the measures on strategic factors.You develop the measures on strategic factors.

Strategic Factors for MaintenanceStrategic Factors for MaintenanceStrategic Factors for MaintenanceStrategic Factors for Maintenance

• Availability Availability • Response time.Response time.• Good planning and schedulingGood planning and scheduling• Costs.Costs.• Rework ( Quality of work)Rework ( Quality of work)• Safety.Safety.• Training/developmentTraining/development

What is a Balanced Scorecard?What is a Balanced Scorecard?

A ProcessA Process For managing and implementing strategyFor managing and implementing strategy A FrameworkA Framework

That uses measurement to describe the strategy of an organization That uses measurement to describe the strategy of an organization across four perspectives (Financial, Customer, Internal Processes, across four perspectives (Financial, Customer, Internal Processes, Infrastructure)Infrastructure)

A Communication SystemA Communication SystemThat links strategic intent in the executive suite to each That links strategic intent in the executive suite to each

part of the organization responsible for implementation part of the organization responsible for implementation

A Measurement SystemA Measurement SystemThat reports on strategic progress and the drivers of That reports on strategic progress and the drivers of

future future performanceperformance

Balanced Scorecard ApproachBalanced Scorecard ApproachBalanced Scorecard ApproachBalanced Scorecard Approach

• Customer – StakeholdersCustomer – Stakeholders

• Process.Process.

• Financial.Financial.

• People learning and development People learning and development

System ClassificationSystem ClassificationSystem ClassificationSystem Classification

• Output measures.Output measures.

• Input Measures Primarily Cost Measures.Input Measures Primarily Cost Measures.

• Within The System MeasuresWithin The System Measures

IntroductionIntroductionIntroductionIntroduction

PLANNING ORGANIZING

Maintenance Process

Maintenance strategy Maintenance Load Forecasting

Maintenance Capacity

Maintenance Organization

Maintenance Scheduling

Process design

Standards Performance Measurement

Project Management

MONITOR

FEEDBACK

CONTROL

Work control Material control Inventory control Cost control Managing for quality

INPUT OUTPUT

Operational

Machines

Equipment

&

Facilities

Labor

Equipment

Management Spares

Variations in

Maintenance

Demand

* Scheduling

Output MeasuresOutput MeasuresOutput MeasuresOutput Measures

• Availability : Measure of UptimeAvailability : Measure of Uptime• Reliability : Mean-time-between-failureReliability : Mean-time-between-failure

• MTBF = S-d/f , f is number of failuresMTBF = S-d/f , f is number of failures• Mean Time To Repair: Measure of Duration of Mean Time To Repair: Measure of Duration of

RepairRepair• MTTR = d/fMTTR = d/f

• Rework Rework • % of rework hours% of rework hours

Output MeasuresOutput MeasuresOutput MeasuresOutput Measures

• Process Rate (PR) : Measure of the Equipment Cycle Time in Process Rate (PR) : Measure of the Equipment Cycle Time in The ProcessThe Process

• PR = Ideal Cycle Time/Actual Cycle timePR = Ideal Cycle Time/Actual Cycle time

• Quality Rate (QR) : Measure of equipment PrecisionQuality Rate (QR) : Measure of equipment Precision

• Total Produced - Rejected/Downgrades/ TotalTotal Produced - Rejected/Downgrades/ Total

• Overall equipment EffectivenessOverall equipment Effectiveness

• OEE = A* PR *QROEE = A* PR *QR

• Productive capacityProductive capacity

• OEE * UtlizationOEE * Utlization

Input MeasuresInput MeasuresInput MeasuresInput Measures

• Input Measures are Mostly Related to CostInput Measures are Mostly Related to Cost

• Cost of PM maintenanceCost of PM maintenance• Cost of CMCost of CM• Cost of maintenance per unit produced.Cost of maintenance per unit produced.• Spare part/material costs per unit produced.Spare part/material costs per unit produced.• Cost of maintenance per available hoursCost of maintenance per available hours

Measures Within The SystemMeasures Within The SystemMeasures Within The SystemMeasures Within The System

• Planning effectiveness : % of man-hours planned to Planning effectiveness : % of man-hours planned to total maintenance hours.total maintenance hours.

• Compliance with PM tasks.Compliance with PM tasks.• Compliance with scheduled work.Compliance with scheduled work.• BacklogBacklog• WO turnaroundWO turnaround• Crafts utilization Crafts utilization • Delays : Time spent waiting for instructions.Delays : Time spent waiting for instructions.• Safety : Safety :

Balance Scored Cards for KPI SelectionBalance Scored Cards for KPI SelectionBalance Scored Cards for KPI SelectionBalance Scored Cards for KPI Selection

• Customer – StakeholdersCustomer – Stakeholders::

• Availability, Reliability, Effectiveness, minimize cost.Availability, Reliability, Effectiveness, minimize cost.

• Process.Process.

Planning, Scheduling, Minimum costs.Planning, Scheduling, Minimum costs.

• Financial.Financial.

CostsCosts

• People learning and development :People learning and development :

• TrainingTraining

Automated Data

Collection & Analysis Sys.

Data Collection &

Measures Calculation

Update Target

Action Plans

Management Review

Are You Meeting Target?

Yes

NoBench Mark

Establish Target

Measures Implementation & Monitoring System

Concluding RemarksConcluding RemarksConcluding RemarksConcluding Remarks

• PM are good and effective communication tools.PM are good and effective communication tools.

• They could be used to improve maintenance.They could be used to improve maintenance.

• Reliable data is needed to develop such systems.Reliable data is needed to develop such systems.

• Management should be careful in utilizing PMManagement should be careful in utilizing PM and must create the right environment.and must create the right environment.