tech article 109
TRANSCRIPT
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AV Technology Ltd 2.2010 CM23 Understanding Maintenance KPIs V1.0 Page 1
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AV Technology Ltd 2.2010 CM23 Understanding Maintenance KPIs V1.0 Page 1
Understanding Maintenance KeyPerformance Indicators
Simon Mills
Director of Training Services
AV Technology Ltd
AV Technology Ltd 2.2010 CM23 Understanding Maintenance KPIs V1.0 Page 2
Introduction
KPIs are an established business toolused to measure and improveeffectiveness of maintenance programs
This presentation discusses implementing and monitoringexternal and internal KPIs in line with best practice,
including: PAS 55-1:2008, Asset Management Part 1: Specification for the
optimized management of physical assets
BS EN 15341:2007, Maintenance Maintenance Key PerformanceIndicators
Allowing management to manage, rather than react Remember, what gets measured gets done
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Introduction
Maintenance impacts on:
The condition of a company's assets
The output of a company's assets
Organizations looking to find the mosteffective ways of managing and improving
maintenance operations discover:
in order to manage maintenance effectively first ofall we need to learn how to measure it
AV Technology Ltd 2.2010 CM23 Understanding Maintenance KPIs V1.0 Page 4
Why Measure?
Until you can measure something andexpress it in numbers, you have onlythe beginning of understanding
William Thomson [Lord Kelvin (1824-1907)]
You cannot manage what you cannot measure
Attributed to Bill Hewlett (1930-2001),
Co-founder of Hewlett-Packard
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Asset Management Good Asset Management
practice has now beenformalised in BSIs PAS 55
This was first publishedin 2004
It was revised and
re-issued in 2008 PAS = Publicly Available Specification
Available from BSI www.bsigroup.com
The Institute of Asset Management (IAM)
AV Technology Ltd 2.2010 CM23 Understanding Maintenance KPIs V1.0 Page 6
Implementing Effective Maintenance
Many organizations try to carry outmaintenance without implementing keystages
Developing a Maintenance Strategy and Setting Performance
Targets, Simon Mills, Maintec 2008
Lets review the 7 key stages in setting up amaintenance program
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Key stages in setting-up a maintenance
program
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Review & measure effectiveness
Carry out equipment audit
1
2
3
4
5
6
7
Establish business requirements1 Establish business requirements
Carry out equipment audit
1
2
Establish business requirements
Carry out reliability
& criticality audit
Carry out equipment audit
1
2
3
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Carry out equipment audit
1
2
3
4
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Carry out equipment audit
1
2
3
4
5
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Carry out equipment audit
1
2
3
4
5
6
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Review & measure effectiveness
Carry out equipment audit
1
2
3
4
5
6
7
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Review & measure effectiveness
Carry out equipment audit
1
2
3
4
5
6
7
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Establish Business Requirements
These factors all directly influence subsequentimplementation steps, especially: Maintenance strategy
KPIs Resources
yyWhat is the available budget1.4
yyWhat is the expected life of the assets1.3
yyWhat is the required reliability1.2
yyWhat is the required availability1.1
Establish business requirements
1
OptimiseKPIRoutineSet up
DetailStep
PhaseTypical Maintenance Management Set-up
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What are KPIs? KPIs measure parameters
which describe an aspect ofthe current state of youroperation whether at departmental level or
board level
They can be compared overtime to indicate changes ortrends
Their nature & range will varyfrom company to company they will be derived from the
stated Business Objectives
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Maintenance Influencing Factors
External Influencing Factors
Location, Society, Culture, Labour Cost
Market Situation, Laws, Regulations
Internal Influencing Factors Company Culture, Process Severity
Product Mix, Plant Size, Utilization Rate
Age of Plant, Criticality
Ref BS EN 15341
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J
I
HG
F
E
D
C
B
A
Business Challenges
Delivery Targets
Production Demands
Use IT
Enforcing Safety Rules
Recovery of Waste
KPIs
Management of SparesQuality Targets
Lack of Investment
Privatisation
Identifying Business Challenges
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8
7
6
54
3
2
1
Asset Management Challenges
Availability
Obsolete Equipment
Lack of Spare Parts
Lack of RedundancyReduce Downtime
CMMS
Reduce Maintenance Cost
Contractor Skills
Environment
Training
Asset Management Challenges
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Moving on to Step 7
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Review & measure effectiveness
Carry out equipment audit
1
2
3
4
5
6
7
Establish business requirements1 Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Carry out equipment audit
1
2
3
4
5
6
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Review & measure effectiveness
Carry out equipment audit
1
2
3
4
5
6
7
Establish business requirements
Carry out reliability& criticality audit
Select appropriate
maintenance strategy/task
Plan work, issue work& carry out work
Record results & determine any
further maintenance action
Review & measure effectiveness
Carry out equipment audit
1
2
3
4
5
6
7
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Measuring Effectiveness
KPIs support business objectives
Cascade down through the organisation
Provide measurement and control
yyActual budget expended7.5
yySpares used7.4
yyPercentage CBM, PPM, Corrective,
Breakdown etc
7.3
yyAvailability & reliability7.2
yyFailure rate, MTBF, MTTR, Downtime7.1
Review & measure effectiveness
7
OptimiseKPIRoutineSet upDetailStep
PhaseTypical Maintenance Management Set-up
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Setting Useful KPIs Once we have established business and
asset management challenges:
the appropriate Key Performance Indicators canbe generated and used
These need to be factors which highlightwhether the business objectives are being met
Then cascade down through the organization toprovide useful control and measurement points
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KPI HeirarchyBoard Level
Business Indicators
Senior Management
Business & Financial Indicators
Departmental ManagementEfficiency & Effectiveness Indicators
Supervisors
Operational & Quality Indicators
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Maintenance KPIs BS EN 15341 recommends 3 types of KPIs
Economic Indicators
Technical Indicators
Organizational Indicators
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BS EN 15341 - Maintenance KPIs
BS EN 15341 Economic indicator examples
Level 1
Total Maint Cost / Asset Replacement Value
Total Maint Cost / Output
Level 2 Average Inventory Value of Maint. Matl / Asset
Replacement Value
Level 3
Corrective Maint Cost / Total Maint Cost
CBM Cost / Total Maint Cost
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BS EN 15341 - Maintenance KPIs BS EN 15341 - Technical Indicator Examples
Level 1
Total Op Time / Total Op Time + Downtime due toMaintenance
Uptime / Required Time
Level 2
Total Op Time / Total Op Time + Downtime related tofailures
Level 3
Preventive Maint time causing downtime / Total downtimerelated to maintenance
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BS EN 15341 - Maintenance KPIs
BS EN 15341 - Organizational indicators
Level 1
No of internal maint personnel / Total internal employees
Planned & Scheduled maint. Man-hours / Total maint. Man-
hours Level 2
Production operator maintenance man-hours / Totalproduction operators man-hours
Level 3
Immediate corrective maint. Time / Total downtime relatedto maintenance
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Desirable Characteristics of KPIs KPIs should be kept as simple as possible.
Over complication is rarely a good idea so KPIsshould be kept as simple as possible to both evaluateand understand.
KPIs should be easily measurable. The easier it is to measure, the more likelihood of the
KPI data being available at timely intervals and on anon-going basis
KPIs should be quantifiable. Both Objective and Subjective data must always be
quantified.
KPIs should be comparable over time. A KPI should always be constructed so as to make
comparisons with previous measured valuesmeaningful.
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Desirable Characteristics of KPIs
KPIs should be related back to businessobjectives This ensures that improvement in KPIs will
correspondingly mean that business goals areaddressed
KPIs should be reviewed or subject to continuous
improvement As business needs and objectives change then so
should the KPIs which support them
KPIs should be communicated in an appropriatemanner to all sections of the workforce A key to driving improvement is the effective
communication of progress to the very people who aremaking it happen
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Case Study - Airport Baggage Handling
Background Most baggage jams corrected in approx. 1 minute
without need for spares
Effective downtime is often reduced by ability to re-direct baggage flow
System contains 300+ motor/gearboxes of varyingtype
1 or 2 Motor/gearbox failures per week with an
average swap out time of 10 minutes! UxE policy in place with little or no reliability
improvement or PdM initiatives
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Case Study - Airport Baggage Handling
Consider the maintenance contractbetween the airport and the contractor:
3 contractor staff to be available at all times
Spares costs charged back to airport
Maximum cumulative stoppage15 minutes /per day
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Case Study - Airport Baggage Handling
Business Objectives
relevant to the airport management team
appropriate for the contracting organization
Reduce Costs Maximize potential for profit-makingwithin current contractual limits
Reduce Customer Complaints
Avoid Downtime
Keep Staffing Costs to a minimum
Minimise Downtime Penalties
Airport Business Objectives Contractor Business Objectives
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Case Study - Airport Baggage Handling
Based on these business objectives we canidentify some KPIs that each side of thebusiness might wish to monitor
Customer Dissatisfaction Number of events causing penalty
Number of lost baggage events
Cost of baggage handling systemspares
Penalty Costs
Reasons for Stoppages - position or typeof motor
Airport KPIs Maintenance Contractor KPIs
System reliability Average Stoppage per day how close togetting regular penalties
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Case Study - Conclusions Airport and Contractors have a different set of
business objectives
Consequently they will employ a different set ofKPIs to monitor performance
In this case, the contractors have no incentive toimprove plant availability (through improvedreliability or PdM programs) providing that:
Availability remains high enough to avoid penalties(15 minutes/day)
Run to Failure policy remains operable without needingmore than 3 available personnel
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Benchmark Comments
Recent benchmarks for a variety of organisations,some using contract maintenance and some directlystaffed noted the following:
Contractor Incentives and KPI's needed review
KPIs did not encourage availability or reliabilityimprovements
Alignment of management objectives between
departments needed review
KPI's were not performance related and needed review
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Maintenance backlog percentage
Information Technology usage
Environmental targets
Energy saving initiatives
Energy costs
Downtime
Customer satisfaction
Calls responded to within SLA
Calls completed within SLA
Breakdown rate
Availability
Accident Rate
EnvironmentSafetyQualityMaintenanceOperationalTypical Management KPIs
KPIs Affected by Maintenance
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Assessing KPI Usefulness
Does the KPI support business objectives?
Does the KPI improve performance?
Does the KPI improve availability?
Does the KPI improve maintenanceeffectiveness?
Does the KPI affect costs?
Does the KPI give management control?
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Summary KPIs need to be flexibleto highlight weak areas and
enable improvements to be tracked easily For example: Maintenance strategies may require modification
if the expected performance or life of an asset or system ischanged by changes to the business
All steps will need revisiting periodically Business requirements can change
Production output changes
Raw material price changes
Replacement of obsolete plant
Reinvestment etc.
Assets failure modes change through life
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Conclusions
To achieve cost effective maintenance, it isnecessary to implement a maintenance programusing a staged process with key steps
Without clear definition of requirements,
achievements and feedback, measurement is notpossible
Measurement of effectiveness through monitoringkey performance indicators is only possible if eachstage has been completed
Without measurement, management andoptimisation is not possible
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References PAS 55-1:2008, Asset Management Part 1: Specification
for the optimized management of physical assets
BS EN 15341:2007, Maintenance Maintenance KeyPerformance Indicators
Developing a Maintenance Strategy and SettingPerformance Targets, Simon Mills Presented at Maintech 2008 Published in ME Maintenance & Asset Management, Vol 23 no 5,
Sept/Oct 2008