Maintenance Metrics Adam Adgar School of Computing and Technology

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

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

Overview of Metrics

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

Benchmarking Stages ► Select a comprehensive set of parameters for comparison ► Select reliable internal and external sites for comparison based on performance. ► Compare own parameters with “best–of– best” measures. ► Identify areas of greatest opportunity

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

Typical Benchmarking Areas ► Planning and Scheduling ► Preventive Maintenance ► Predictive Maintenance ► Reliability Improvement ► Spare Parts Management ► Contract Maintenance Management

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

Common Metrics ► Corporate Asset and Capital Metrics RONA, ROCE, EVA, ROE, ROA ► Overall Effectiveness Metrics Asset Utilisation, OEE, COPQ, Uptime, Operational Readiness, Availability, Cost of Unavailability, 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

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

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)

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

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.