by Ron Thomas

(Excerpt taken from Chapter 5.3, Rules of Thumb for Maintenance and Reliability Engineers)

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 Asset Reliability Process represents the collection of ‘all’ tasks required to support the maintenance function. The process is a supply chain. If a step in the process is skipped,  or  performed  at  a  substandard level, the process creates defects known as failures. The output of a healthy reliability process is optimal asset reliability at optimal cost.

Asset Reliability Process measures are leading indicators. They monitor if the tasks are   being   performed   that   will   “lead   to results”. For example a leading process indicator would monitor if the planning function  was  taking  place.  If  people  are doing all the right things then the results will follow. The leading ‘process’ indicators are more immediate than results measures.

Result measures monitor the products of the Asset Reliability Process. Result measures include maintenance cost (as a contributor to total operating cost), asset downtime due to planned and unplanned maintenance (as a contributor to availability) and number of failures on assets (the measure of reliability: this can then be translated into mean time between failures). Results measures lag. Failure is a good example. Typically the same piece of equipment doesn’t fail day after day. Take a pump for example. Say the pump fails on average once every 8 months. If we improve its reliability by 50% it will now fail every 12 months. You have to wait at least 12 months to see 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.

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, FRACAS (Failure Reporting, Analysis, and Corrective Action). Key performance indicators for each element are recommended, if not required.

It should be noted that variations of these metrics may be defined or additional performance metrics may be used. The metrics  presented  here  provide  a  clear indication if  the requirements of  each element are being satisfied and, if not, what action should be taken to correct the lack of maintenance process adherence.

Below is a listing of a few KPIs you may want to consider.

Appendix 1For a download of this chart go to: https://www.box.com/s/zro5vvylfgkvxhevtqe5

I would appreciate your comments.  Please post them below.

3 Responses to Key Performance Indicators – Managing the Maintenance Function

  1. Heley01 says:

    Great list of KPI’s
    I will use these

  2. 9rsmith_9 says:

    I am glad I could help. Please share this chart with others. The Chapter from my book where this chart came from can be downloaded at https://www.box.com/s/elgi4muthpym62qk02gn

    Thanks for your comment.

    Ricky

  3. Cool says:

    Thks for this.
    Very nice.I will make a great use of it.

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