Maintenance Metrics

1. Maintenance Metrics Adam Adgar School of Computing and Technology

2. Introduction • Metrics are essential in maintenance and asset management activity • Assist management and plant personnel to: • Understand requirements • Identify improvement opportunities • Prioritise resources • Measure performance to objectives

3. Introduction • Metrics must demonstrate the value of maintenance improvements in financial terms • Hierarchy of distinct metrics can be linked to corporate goals • Requires consistent definitions and rules to avoid skewing of values and incorrect decisions being made • Metrics must cascade from the top of the organisation and must directly relate to goals • Set of metrics adopted must be focused to avoid information overload and confusion

4. Overview of Metrics

5. Benchmarking • “A systematic process for measuring best practice and comparing the results to corporate performance in order ot identify opportunities for improvement and superior performance.” • Examples: • Tonnes of steel produced per available hour • Assembly hours per automobile

6. General Benchmarking Process • Select functions to be benchmarked • Identify performance and effectiveness metrics • Collect internal data • Validate metrics • Establish performance • Select external site for comparison • Collect external data • Establish performance • Compare internal and external results • Analysis of results

7. Typical Benchmarking Areas • Planning and Scheduling • Preventive Maintenance • Predictive Maintenance • Reliability Improvement • Spare Parts Management • Contract Maintenance Management

8. Benchmarking Methodology • Requirements • Specific to plant, process, equipment… • Consider reliability of data sources • Easily understandable • Repeatable • Demonstrate cause and effect • Support follow–on monitoring

11. Common Metrics • Corporate Asset and Capital Metrics • RONA, ROCE, EVA, ROE, ROA • Overall Effectiveness Metrics • AssetUtilisation, OEE, COPQ, Uptime, OperationalReadiness, Availability, CostofUnavailability, Downtime • Industry Performance Metrics • CAV, RAV, EDC, EFOR, life cycle cost/profit, production cost/labour unit per unit produced • Equipment Management Metrics • MTBF, MTTF, MTTR • Key Performance Indicators • Work Process Productivity Metrics

12. Application of Metrics • Very important to select the correct metrics – must be meaningful • Must connect to organisational objectives • All key processes should have one or more metrics associated. • Consider cost of collecting suitable data

13. Benefits of Applying Metrics • Documented evidence for the following: • improvement in terms of increased availability and reduced downtime (product value) • Increased product quality (quality premium compared to COPQ losses) • Increased throughput (product value) • Reduction in maintenance costs (saved labour hours, parts, consumables) • Reduction in breakdown costs (new average repair cost) • Increased energy efficiency (new production cost) • Reduced spare parts inventory (freed capital)

14. Summary • Good metrics will focus activities on maximum benefits and value added. • Poor metric lead to unintended results. • Metrics should be positive rather than negative (e.g. first run quality, not rework) • Avoid conflicting metrics • Examine complementary metrics together (e.g. yield, quality) • Identify causes of non-compliance • Metrics must be updated when required and eliminated if not used

15. References • Mitchell, J.S., Hickman, J.E., Amadi-Echendu, J.E. (2007) Physical Asset Management Handbook. Clarion Technical Publishers. • Wireman, T. (2003) Benchmarking Best Practices in Maintenance Management. Industrial Press Inc.