1. Measuring and Improving Maintenance Performance
Salih O. Duffuaa
Systems Engineering Department
King Fahd University of Petroleum and Minerals

2. Presentation Plan Introduction Evolution of Maintenance Management
Why Measure
Performance Measurement
Structured Auditing
Key performance indicator
Benchmarking
Improvement process
Case Studies

3. Role of Maintenance
Maintenance is defined as the combination of activities by which equipment, assets or a system is kept or restored to a state in which it can perform its designated function. It is an important factor in product or service quality and can be used as a strategy for successful competition

4. Introduction

5. Maintenance Versus Organization Objectives
The objectives and goals of an organization depends on the organization state, strategy and type of business. Some objectives are
Meet or exceed customer satisfaction
Maximizing profit, Meet set targets
Meet set safety standard,
Zero product defect
Does Maintenance affect these goals?

6. Evolution of Maintenance Management
Prior to 50th: Necessary evil
50-70 : Preventive maintenance
70th : Life cycle costing, RCM and Productive maintenance.
: TPM an RCM
9oth-date: Strategic view of maintenance

7. Why Measure What can be measured will be understood better.
What can be measured can be assessed.
What can be measured can be managed.
What can be measured can be improved.

8. Measuring Maintenance Performance
What to measure?
How to measure?
What to do with measurement output?

9. Continuous Improvement
Develop Measurement System (1)
Evaluate Maintenance System (2)
Identify most deficient areas (3)
Identify root causes of deficiencies (4)
Develop and implement corrective and preventive actions (5)

10. Measurement System Structured Audit Performance Indicators
Benchmarking ( can be utilized by both)

11. Structured Audit Approach
What is an audit
Standard for the audit ( factors for audit)
Organization of the audit
Expected out put of the audit

12. Structured Audit
The American Heritage Dictionary defines audit as: “an examination of records or accounts to check their accuracy”.
Thomas and Henke (1989), “Auditing is a process in which one person verifies the assertions of an other”.
Carmichael et al (1996), defines audit as : “Auditing is an independent investigation of some particular activity”.
( defines an audit as a formal or official examination and verification of the activities of an organizational unit, system, function, or other aspect of the organization's operations. It may include a review of (1) economy and efficiency of operations; (2) effectiveness in achieving program results; and (3) compliance with laws, regulations, and other rules. The audit results in a written report

13. Standard for the Audit Factors/activities to be examined.
Standard for each factor.
Aggregation of sub-factors and factors.

14. Audit Factors 1. Strategic Management
Maintenance mission and objectives
Alliance of process with mission and objectives.
Values
Performance measurement
Effective strategies
Strategy assessment

15. Audit Factors 2. Organization and staffing 3. Human resources
Organization structure
Job description
responsibilities and supervision
Polices and procedures
Shops organization
3. Human resources
Shop manning
Employee motivation

16. Audit Factors 4. Training 5. Management control and budget
Management training
Planner training
Craft training
5. Management control and budget
6.1 Budget planning
Reporting and feedback
Effective control

17. Audit Factors 6. Work order planning and scheduling
Priority system
Work order system and procedures
Emergency & shutdown scheduling
Planning procedures
7. Facilities and resources
8. Stores and material
9. Preventive maintenance and equipment history
1o. Engineering Condition monitoring

18. Audit Factors 11. Information technology
12. Performance analysis and appraisal
13. Safety in maintenance
14. Maintenance and the Environment
The audit program we are using has 90 questions distributed over the above 14 main factors.

19. Audit Plan and Execution
Examine the audit program to reflect plant special characteristics.
Form audit team from consultant in plant personnel.
Regular meeting.
Corrective and preventive actions.

20. A case of a Process Plant in Saudi Arabia : Audit Raw Score

21. Factors Weight Using AHP

22. Audit Analysis

23. ABC on the Table

24. Improvement Actions Factor 2: Organization and Staffing
Document procedures for PM
Supervisor technician ratio
Establish a suitable planner-worker ratio.
Decentralize some of the maintenance activities.
Factor 13: Safety in maintenance
Include safety within maintenance process
Enforce safety rules
Training program for maintenance personnel.

25. Performance Measures
An alternative or integrated approach with structured auditing ?
It links processes to objectives.

26. Performance Measures
There are literally hundreds of potential indicators
“Appropriate” indicators depend on many factors, such as
Level in the organization to use the information
Existing data collection systems, and how easily modified
Staff availability to develop/maintain systems
Demands of managers &teams for the information, and their level of sophistication (foreman vs. MBA)
Frequency of reporting also is situation dependent
Stratification options by plant, department, machine, product line, etc., are important

27. Managerial Classification
Macro Indicator
Macro-indicators (for upper management, primarily)
Micro Indicator
Micro-indicators (for lower levels of management)

28. Macro Indicator
maintenance expense dollars as a percent of replacement asset value.
maintenance expense dollars per unit produced
maintenance expense dollars as a percent of plant controllable expenses
regulatory compliance indicators
Productive capacity

29. Micro-Indicator maintenance budget compliance (budget vs. expense)
monthly expense dollars (by equipment type)
percent overtime (3-9% sometimes cited as ideal)
percent emergency work

30. System Classification
Input Measures Primarily Cost Measures
Output measures
Within The System Measures

31. Input Measures Input Measures are Mostly Related To Cost
Labor : Cost of trades, semi-skilled etc
Materials and spares
Contracts
Shop Service
Equipment Rentals
Maintenance Overhead
Company Overhead

32. Output Measures Availability : Measure of Uptime
Reliability : Mean-time-between-failure
MTBF = S-d/f , f is number of failures
Mean Time To Repair: Measure of Duration of Repair
MTTR = d/f
Utilization = Scheduled Time/C T
CT = Calendar Time

33. Output Measures
Process Rate (PR) : Measure of the Equipment Cycle Time in The Process
PR = Ideal Cycle Time/Actual Cycle time
Quality Rate (QR) : Measure of equipment Precision
Total Produced - Rejected/Downgrades/ Total
Overall equipment Effectiveness
OEE = A* PR *QR
Productive capacity
OEE * Utlization

34. Measures Within The System
Work Distribution : Time Spent in each work category
Delays : Time spent waiting for instructions
parts, travel,breaks, Start and Quits
Compliance : Measures to Track Compliance with various plans, such as PM, Shutdown schedules etc.

35. Measures Within The System
Backlog : Amount of Work Planned but not Completed by Plant, Area, Craft, etc
Failure Analysis: Tracks improvement analysis, such Number of New PM Routines, Number of Root Cause Analysis of Breakdowns Undertaken.

36. Indicators Selection Criteria
Reflect business objectives.
Impact customer satisfaction.
Quality of product or service
Describe the performance of key process.
Performance of critical equipment.
Safety and environment.

37. Balance Scorecard Approach
Financial
Customer
Internal
Learning and growth

38. Improvement Approach Identify areas were goals are not met
Use Pareto chart to prioritize areas
Root cause analysis
Corrective and preventive actions
Implement actions
Measure and check

39. Benchmarking Formal Definition
Benchmarking is the continuous, systematic process of measuring our products, services, and practices against the toughest competitors or those companies recognized as industry leaders.
Working Definition
Benchmarking is a basis of establishing rational performance goals through the search for best industry practices that will lead to superior performance.
A Related Definition
Benchmark: An industry standard
Descriptive Benchmarks or Practices
Quantitative Benchmarks or Performance Measurements

40. Benchmarking As An Improvement Tool
How Benchmarking Makes Possible Improvements
The gap between internal and external practices creates the need for improvement
Understanding industry best practices identifies what you must improve.
Externally benchmarked practices developed from others give a picture of the endpoint after improvement.

41. Types of Benchmarking Internal External
Similar processes (data is available).
External
Type of industry (competitors)
Best in industry (non-competitors)

42. Benchmarking Process

43. Benchmarking as a Process of Improvement
Know your own operation, both its strengths and weaknesses.
Know those industries that excel at the maintenance processes used in your operation, including competitors, sector leaders, and those in other industries
Set challenging targets for your maintenance performance measures; incorporate the best practices
Measure results and strive continually for superior performance

44. Key Factors for Success
Management commitment for improvement.
Create a culture of Maintenance Kaizen.
People motivation, growth and continuous learning.
Quality circle for process improvement
Reward based performance.
Technology as a means for enabling.

45. Conclusion Maintenance Should managed as a business unit.
Maintenance performance must be aligned with company strategic directions.
Three approached for improvement are presented- Structured audits, Performance Indicators and Benchmarking.

46. Conclusion
Culture of continuous improvement (C.I) must be created to sustain C. I.
Leadership and management commitment are key to creating the culture of C.I.

47. Thank you for your patience
Any Questions or comments.