Which maintenance KPIs save your day?

Why do asset-centric companies need to implement analytics? Could it be because analytics claims to:?

?? make smart data-driven decisions consistently and quickly??

?? increase productivity and efficiency??

?? decrease the maintenance costs and the number of unplanned shutdowns??

?? improve maintenance planning and execution??

?? enable technicians to understand the equipment in the context?

Yes! ... but the promise of achieving these maintenance goals using a data-driven approach is fulfilled if the maintenance performance is measured and analyzed through key performance indicators (KPIs). Before we start talking about KPIs, we would like to stress out that the following three points are necessary to get results from analytics in industrial maintenance.??

1?? Incorporate digital analytics tools into your maintenance strategy??

2?? Set up work order management alongside the predictive maintenance?

3?? Empower personnel to take advantage of data to optimize workflows

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Your concern as an organization is to achieve effectiveness and efficiency of tools, processes, and people, which would reflect your choice of KPIs. Based on the selection and gained data, you plan. Make decisions and influence not only maintenance strategy but business strategy as a whole. ?

?And here comes the dilemma:?

Which KPIs should you have on your EAM/CMMS dashboard to keep on top of things? Which indicators to track to be able to spot opportunities, but not too many to feel overwhelmed?

?The choice of the maintenance metrics to track as KPIs is determined by knowing:??

1?? which type of assets do you manage and ?

2?? which goals are prioritized in your maintenance strategy.?

?

Let us review closely 5 standard maintenance KPIs:

#??1????????????????????????? ????????????????

Hours of unscheduled downtime is one of the most reliable metrics to see if your maintenance strategy works. The metric reveals how often the issue appears and how long corrective maintenance needs for dealing with the issue.?

This is the formula for the calculation of unplanned downtime:

There is also a formula calculating how the downtime affects your costs:

Let us look at it with an example:?

1. Think about 1-hour timeframes and consider how many parts are produced every hour.??
2. Then evaluate how much profit is made on each part.??
3. Using this formula, if you make a profit of $30.00 per part or unit, and produce about 30 products per hour, each hour is worth $900. If an asset failure causes you 3 hours of downtime, you lose $2,700.00 in just those few hours! ?

#??2??????????????????? ?????????????????????? ???????? ??????????

Reactive or breakdown maintenance takes place when the equipment breaks. In general, companies should aim to plan all their maintenance activities to have stable and predictable costs and being in control of smooth production.?

This calculation compares hours spent on reactive (on-demand work orders) and planned/scheduled maintenance work orders. If the final percentage of reactive maintenance is low, that is a vital indicator of your planned maintenance strategy.?

Here is how the reactive work KPI is calculated (SMRP Best Practices 5th Edition):

#??3?? ?????????????????????? ??????????

Measuring costs is a unifying metric across industries. It measures the total maintenance cost required to generate a specific production unit over a specific period (monthly, quarterly, or annually). This enables the business to get a perspective on the trend of maintenance costs per unit produced and how they positively or negatively impact life cycle costs. ?

The maintenance costs KPI formula is:

Let us look at it with an example:?

1. Imagine we are manufacturing hand sanitizer by the liter. Last month we turned out a million liters of the product for shipment. Our month’s maintenance costs were $100,000.
2. So, the calculation stays as:?

Maintenance Unit Cost = Total Maintenance Costs / Standard Units Produce

Maintenance Unit Cost = $100,000 / 1,000,000?

Maintenance Unit Cost = $0.10 per liter?

It is worth tracking this figure weekly or even monthly to see how and if the maintenance cost improves over time.?

#??4?? ???????? ???????? ?????????????? ?????????????? (????????)

This metric:?

? specifies the average time an asset is healthy and running between failures??

? helps to set a preventive maintenance schedule?

? is a well-known basic measure of the reliability of an asset??

It is used to assess the reliability of a repairable asset. When we say repairable, we mean those assets or components that can be repaired when they fail, i.e., pumps, valves, and conveyors. Non-repairable items use a different metric called mean time to failure (MTTF). They are items such as light bulbs, electronic items, or circuit breakers, i.e. when they fail, they are simply swapped out.?

When you trend MTBF, then an increase in the metric is a good thing and will signify that the asset reliability is improving or increasing. It is a simple KPI formula:

Let us look at it with an example:?

1. Imagine you are a mining company, and you are monitoring the MTBFs of each haul truck. One troublesome vehicle has had a running time of 3,500 hours (about 5 months) this year and already suffered nine failures. What is MTBF??
2. So the calculation stays as:

MTBF = 3500 / 9?

MTBF = 389 hours (about 2 and a half weeks)

#??5?? ???????? ?????????? ?????????? ????????

The work order cycle time KPI specifies the time from the start of a work order until it is technically closed in the EAM or CMMS system. The purpose is to understand how long it takes to finalize the work order. Companies should aim at decreasing the time. The time increase might be caused by delays in spare parts ordering, resource issues, planning problems, or unexpected spare part lead times.?

The calculation looks like this:

*Work Order Creation Date is when it was entered into the EAM or CMMS.??

** Work Order Completion Date is when it was technically closed and includes further data such as work done, hours worked, parts used, planner feedback, and more.

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We hope that throughout the reading, we have established the importance of maintenance decisions to be data-driven. Having one centralized digital EAM software providing dashboards and reporting functions where trends and performance changes are easily spotted sounds like a good investment for any maintenance manager.??

Are you interested how does maintenance reporting in Microsoft Dynamics looks like? Check our online webinar

The original blog was posted on our website: https://www.dynaway.com/blog/maintenance-kpis?