Maintenance Key Performance Indicators (KPI’s)
Torbjörn Idhammar, IDCON INC
It is often said that “what gets measured gets done”. And getting things done, through people, is what management is all about. Measuring things that get done and the results of this effort is an essential part of successful management, but too much emphasis on measurements, or the wrong measurements may not be in your company’s best interests.
Key Performance Indicators (KPI’s) are an important management tool to measure business performance, and are often used to measure maintenance. Unfortunately, unlike operations, there are few “hard” measures of maintenance output and the measurements that are used are often easy to manipulate.
Maintenance KPI’s must be integrated with operating KPI’s and must be “balanced”, and there are three other key criteria that should be considered when deciding what aspects of maintenance to measure:
- The KPI’s should encourage the right behavior
- They should be difficult to manipulate to “look good”
- They should not require a lot of effort to measure
Some measurements may encourage people to do things that you do not want. A common measurement is “adherence to weekly work schedule” for non-shutdown maintenance work. It’s easy to achieve a high adherence to schedule by scheduling less work, through over-estimating work orders.
However, what’s really wanted is higher productivity, which can often be achieved by challenging people through scheduling more work. So the wrong measurement may work against you.
Like “adherence to schedule”, other common measurements are easy to manipulate. Some examples are percent of time spent on Preventive Maintenance (PM) work, percent of re-work, percent emergency work and percent “break-in” work.
Look for KPI’s which are truly relevant and satisfy the three criteria listed above. A good example comes from a plant trying to improve shutdown planning, where a new target of completing all planning two weeks in advance of a shutdown has been set.
Because all shutdown work orders have a shutdown code, a simple report from the CMMS listing all purchase requisitions against work orders for a specific shutdown that were originated less than two weeks in advance will give a very useful measure.
It supports the right behavior, is unlikely to be manipulated (and if it is it should be obvious) and is easy to measure (the CMMS does all the work). It will also provide information on where to take action and where to recognize good planning efforts.
Innovative KPI’s such as the above example may be of greatest value when measuring the success of efforts to change practices, and may be discontinued when the new practices become a habit.
Torbjörn Idhammar is the president and CEO of IDCON INC., a Reliability and Maintenance Management Consulting Firm. Tor’s responsibilities include training IDCON consultants, product development, sales, and marketing. He gives advice to IDCON’s multi-site and international clients to ensure outcomes and deliverables are met.
How to Fix the 70/30 Phenomenon Christer Idhammar, Founder IDCON INC When you ask front line supervisors or team leaders if all people in their teams are performing to the same standards or if some are doing more work and achieving more results than others, you will often get the same answer. All over the world, the most common answer,...
Zen and the Art of Managing Maintenance Paul V. Arnold, MRO Today For a half-century, the United States Postal Service hired so many maintenance employees with military experience that it was seen as the final tour of duty for many technically oriented American servicemen. Maintenance managers - some of whom were former officers in the Army, Navy, Air Force or...
Why do maintenance improvement initiatives fail to deliver? (Hedgehog or Fox?) Christer Idhammar, Founder IDCON INC It is not uncommon that many reliability and maintenance improvement initiatives fail to deliver expected results. Why is it so? Some of the most common causes I have observed include: Lack of top management understanding, directive and long term support. Initiatives are shortsighted and...
Why Improvement Efforts Fail John Crossan Why do improvement efforts fail or perhaps not sustain the gains? There are many reasons, but those most often stated are “lack of commitment” and not “following the process”. But why is there lack of commitment, and why aren’t processes followed? Here are a few of the reasons that I’ve seen: • Too much...
TPM and RCM: Whirled Class Paul V. Arnold, MRO Today When a piece of production machinery broke down at the Whirlpool plant in Findlay, Ohio, several years back, it was accepted practice for the machine operator to call maintenance and then sit back and wait for the problem to be fixed. Critical information and knowledge was not shared between the...
Where Do Maintenance Professionals Come From? www.machineryreliability.com Not long ago, the maintenance manager of a world-scale petrochemical plant located off shore sent us a distress message. He detailed the long-term effects of “reengineering” by blindly downsizing the reliability assurance and improvement function in a number of modern plants. “We are continuously plagued with problems associated with plant rotating equipment and...
TPM and Tecate: The New Translation reliableplant.com Total Productive Maintenance does not have a great reputation in American industry these days. A study conducted in 2006 by The Manufacturing Research Center showed that only 38 percent of U.S. manufacturers surveyed were currently implementing TPM. Of those implementing TPM, 37 percent said they weren't making as much progress as expected in...