Measurement in Maintenance Management

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Measurement in Maintenance Management

• Maintenance Excellence
• John D. Campbell, Andrew K.S. Jardine
• Ph.D. Course
• Min-chan Shim

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Contents
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Introduction

• Performance measurement is the process of
  assessing progress toward achieving predetermined
  goals. Performance management is building on
  that process, adding the relevant communication
  and action on the progress achieved against these
  predetermined goals.
• ? this is one of the basic requirement of an
  effective operation

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Introduction

• In this chapter, we discuss effective tools to
  help you strengthen your maintenance performance
  measurement.
• Maintenance performance measurement is subdivided
  into its five main components
• - Productivity
• - Organization
• - Work efficiency
• - cost
• - quality
• Together with some overall measurements of
  departmental results.
• Youll learn about consistency and reliability as
  they apply to measurement
• - individual performance measures ? summarize
  the data ? essential tie-in between
  performance measures and action

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Maintenance analysis The way into future

• The trick is how to use the results to achieve
  the needed actions.
• This requires several conditions
• - consistent and reliable data
• - high-quality analysis
• - clear and persuasive presentation of the
  information
• - receptive work environment
• Since maintenance optimization is targeted at
  executive management and the boardroom

Maintenance is a business Process Turning inputs
into useable outputs
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Maintenance Analysis

• Below figure show the three major elements of
  this equation

• Labor
• Equipment
• Materials
• Outside services
• Technical overhead
• Management overhead
• Facilities
• Training

• Availability
• Quality
• Maintainability
• Reliability
• Equipment effectiveness
• Utilization
• Life-cycle cost
• Return on investment

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Maintenance Analysis

• Most of the inputs are familiar to the
  maintenance department and readily measured, such
  as labor costs, materials, equipment, and
  contractors
• There are also inputs that are more difficult to
  measure accurately including experience,
  techniques, teamwork, and work history-yet each
  can significantly impact results.
• Some outputs are easily recognized and measured,
  others are harder.
• As with the inputs, some are intangible, like
  team spirit
• Converting the maintenance inputs into the
  required outputs is the core of the maintenance
  managers job.
• The focus must be on the comparative standing of
  your company or division, or improving
  maintenance effectiveness from one year to the
  next.

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Maintenance Analysis

• As an essential part of your organization,
  maintenance must adhere to the companys overall
  objective and direction
• Maintenance cannot operate in isolation.

Plan Tactics
Set Mission
Set Objectives
Develop Strategy
Plan Tactics
Execute Tactics
Measure Results
Maintenance optimizing where to start
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Maintenance Analysis

• In modern industry, all maintenance departments
  face the same dilemma
• Which of the priorities to put at the top of the
  list?
• Should the organization minimize maintenance
  costs or maximize production throughput?
• Does it minimize downtime or concentrate on
  customer satisfaction?
• Should it spend short-term money on a reliability
  program to reduce long-term costs?
• The maintenance manager must adopt those
  priorities convert them into corresponding
  maintenance priorities, strategies, and tactics
  to achieve the results then track them and
  improve on them

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Maintenance Analysis
To maximize product sales
Corporate Priority
To maximize product throughput and equipment
reliability
Maintenance Priority
Implement RCM program and Condition-based
monitoring
Maintenance Strategy
Complete reliability assessment on critical
equipment do weekly CBM based inspections, track
results
Maintenance Tactics
Interrelating corporate priorities with
maintenance tactics
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Maintenance Analysis

• The most effective method is to set up as weekly
  Work Order tasks, subject to the same performance
  tracking as preventive and repair Work Orders.
• Trying to improve performance, manager can be
  confronted with many, seemingly conflicting,
  alternatives.
• The most effective techniques help you map
  priorities by indicating the payoff that
  improvement will make.
• The review techniques tend to be split into
  macro(covering the full maintenance department
  and its relationship to the business) and
  micro(with the focus on a specific piece of
  equipment or a single aspect of the maintenance
  function)

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Maintenance Analysis

• The leading macro techniques are
• - Maintenance effectiveness review involves
  the overall effectiveness of maintenance and its
  relationship to the organizations business
  strategies.
• - External benchmark draws parallels with
  other organizations to establish how organization
  compares to industry standards. Confidentiality
  is a key factor, and results typically show how
  the organization ranks within a range of
  performance indicators.
• - Internal comparisons measure a lot of
  parameters similar to those of the external
  benchmark, but draw from different departments or
  plants.
• - Best practices review look at maintenances
  process and operating standards and compares them
  against the industry best.
• - Overall equipment effectiveness(OEE)

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Maintenance Analysis

• The leading micro techniques are
• - Post implementation review of systems to
  assess the results of buying and implementing a
  system(or equipment) against the planned results
  or initial cost justification
• - Machine reliability analysis/failure rates
  targeted at individual machine or production
  lines
• - Labor effectiveness review measuring staff
  allocation to jobs or categories of jobs compared
  to last year
• - Analyses of materials usage, equipment
  availability utilization, productivity, losses,
  costs, etc

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Measuring Maintenance The broad strokes

• To improve maintenance management, you need
  measurement capability for all the major items
  under review. The following are the major
  categories that should be considered
• - Maintenance productivity
• measures the effectiveness of resource
  use
• - Maintenance organization
• measures the effectiveness of the
  organization and planning activities
• - Efficiency of maintenance work
• how well maintenance keeps up with
  workload
• - Maintenance costs
• overall maintenance cost vs. production
  cost
• - Maintenance quality
• how well the work is performed

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Measuring Maintenance The broad strokes

• Well-thought-out graphics will help to sell the
  results and stimulate action. Graphic layouts
  should be informative and easy to interpret, like
  the spider diagram.

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Measuring Maintenance Balanced scorecard

• Each of the example above shows only a single
  measure of performance. The balanced scorecard
  concept broadens the measure beyond the single
  item.
• - Leading indicators(????) the change in the
  measurement (hours of training, for example)
  precedes the improvements being sought (decrease
  in error rate). Typically, you see these benefits
  only at a later date
• - Lagging Indicators (????) the change in the
  measurement (staff quitting, for example) lags
  behind the action that cause it(overwork or
  unappreciative boss)

See Table 3.3 balanced scorecard
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Measuring Maintenance The fine strokes

• To evaluate predict, and improve the performance
  of a specific machine you must have its operating
  condition and repair data, not only for the
  current period but also historically.
• - CMMS, EAM, CBM, SCADA, Process Control system
  is the best data sources
• Among the many way to track individual equipment
  performance are the measurement of
• - reliability, availability, productivity,
  life-cycle cost and production losses
• Use these techniques to identify problems and
  their causes so that remedial action can be taken.

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Whats the point of measuring?

• A major driving force for performance measurement
  is the goal of achieving excellence.
• There must be effective measurement methods to
  withstand the scrutiny of the Board of Directors,
  shareholders, and senior management.
• As the mission statement cascades down to the
  maintenance department, so does the demand for
  accurate measurement
• This is reason enough to measure maintenance
  performance
• - Competitiveness goal, price, quality,
  service-driven
• - Right-sizing, down-sizing and up-sizing
• - New processes and technologies are being
  introduced rapidly
• - Performance measurement is integral when
  deciding to maintain or replace an item
• - The performance-improvement loop is core
  process in identifying and implementing
  progress

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Measurement overall maintenance performance

• The measure here are macro-level, showing
  progress toward achieving the maintenance
  departments overall goals

Maintenance Productivity
Maintenance Organization
Maintenance Efficiency
Maintenance Performance Indicators
Maintenance Costs
Maintenance Quality
Overall Results
Maintenance categories for macro analysis
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Measurement overall maintenance performance

• These indicator measure whether the maintenance
  department keeps the equipment productive and
  produces quality product
• - Availability the percentage of time that
  equipment is available for production,
  after all scheduled and unscheduled downtime
• - Mean time to Failure(MTTF)
• - Failure frequency or breakdown frequency

Overall Maintenance Results
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Measurement overall maintenance performance

• - Mean time to Repair(MTTR)
• - Production rate Index

Overall Maintenance Results
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Measurement overall maintenance performance

• Maintenance Productivity Indices measure
  Maintenances use of resources, including labor,
  materials, contractors, tools, and equipment.
  These components also form the cost indicators
• - Manpower utilization(Wrench Time)
• - Manpower efficiency
• - Material usage per work order
• - Total maintenance cost as a percentage of
  total production costs

Maintenance Productivity
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Measurement overall maintenance performance

• Maintenance performance indicators measure the
  effectiveness of the organization and maintenance
  planning activities.
• - Time spent on planned and scheduled tasks as
  a percentage of total time
• - Breakdown Time
• - Cost of lost production due to breakdown

Maintenance Organization
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Measurement overall maintenance performance

• This set of measures tracks the ability of
  maintenance to keep up with its workload.
• - Work Order completions versus new requests
• - Work Order backlog
• - Job timeliness and response times

Efficiency of Maintenance work
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Measurement overall maintenance performance

• More attention is probably paid to the
  maintenance cost indicators than any other set of
  measures.
• - Direct maintenance cost per unit output
• - Stores turnover
• - Maintenance cost versus the cost of asset
  base
• - Overall maintenance costs per unit output

Maintenance Costs
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Measurement overall maintenance performance

• The pundits frequently ignore maintenance quality
  when looking at performance measures.
• - Repeat jobs and repeat breakdowns
• - Stock-outs
• - Work Order accuracy

Maintenance Quality
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Collecting Data

• From the above examples, you can select measures
  that will generate the right information to drive
  action.
• The data is drawn from condition-based
  monitoring, Enterprise Asset Management systems,
  engineering systems, and process-control systems.
• However, too much being disordered the
  maintenance managers decision
• One possible solution to this is the Maintenance
  Knowledge Base being developed by at least one
  EAM company and one CBM company.
• This concept recognizes that not only must
  various data sources be identified more than a
  simple point-to-point linkage between these
  sources is needed.

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Applying performance measurement to individual
equipment

• All the performance indicators we have reviewed
  apply to the broader spectrum of maintenance
  costs and operations.
• If the organization has numerous examples of the
  same piece of equipment running, comparative
  evaluations can show the varied operating results
  and cost caused by different running conditions
  and maintenance methodologies.
• Adopting an internal Best Practices approach in
  your organization can yield significant
  improvement
• To do this type of forensic maintenance, the
  detailed data must be readily available, and
  almost demands you use an EAM or CBM available.
• The other key issue is where to start. Every
  Maintenance Manger needs more time and less work,
  but you know that making time only comes from
  doing things more effectively.
• Benefits and implementation difficulty matrix
  will be helpful for starting.
• (see Figure 3-16)

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Whos listening? Turning measurement into
information

• A frequent complaint from the maintenance
  department is that they wont listen. Who are
  they?
• Maintenance hasnt been able to make its case
  convincingly
• For that, you need facts, figures, and attractive
  graphs
• The cynics claim that graphs were invented
  because Management cant read.
• There is more than a grain of truth in this,
  although it stems from lack of priority, not of
  time or ability.
• The trick is to make them a priority and involve
  the other departments in the process.
• Many of the issues that make Finance question the
  maintenance departments proposals are technical,
  requiring input from Accounting

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Turning measurements into action

• Measurement are only as good as the actions they
  generate.
• If you fail to convert them into action, you miss
  the whole point of performance measurement.
• No company ever took the lead playing catch-up.
• The final word on this phase of the measurement
  issue goes to Terry Wireman

Yesterdays excellence is todays standard and
tomorrows mediocrity