The first step on the road to Predictability is to calculate the key performance indicators (KPIs) that will help you achieve your goals.
KPI’s are used to track performance in several areas over time and indicate when an organization is operating inside or outside of acceptable levels.
“A useful Maintenance Key Performance Indicator (KPI) drives reliability growth while guiding your choices for improving maintenance effectiveness and efficiency.” – Lifetime Reliability
Here are the top KPIs that your organization should be using to get a clear picture of how to keep your enterprise running as smoothly as possible today and years into the future.
1. Mean Time Between Failure (MTBF)
Mean Time Between Failure (MTBF) is an extremely important measure for asset-heavy enterprises. MTBF refers to the time in between unexpected breakdowns of an asset or production stoppages. The goal of your maintenance efforts is to have the MTBF continue to increase. For the most accurate measurement, mean times are usually assessed annually.
MBTF = Σ (Start of Downtime – Start of mean Time Between Fail (MTBF)
2. Mean Time to Repair (MTTR)
Mean Time to Repair (MTTR) is the average time required to troubleshoot and repair failed equipment and return it to normal operating conditions. It is a basic technical measure of the maintainability of equipment and repairable parts. Maintenance time is defined as the time between the start of the incident and the moment the system is returned to production (i.e. how long the equipment is out of production). This includes notification time, diagnostic time, fix time, wait time or cool down time, reassembly, alignment, calibration, test time, back to production and so on. It’s also important to remember that MTTR generally does not consider lead-time for parts.
MTTR = Total Maintenance Time / # Maintenance Repairs
3. Overall Equipment Effectiveness (OEE)
Overall Equipment Effectiveness (OEE) is made up of three components: Availability (the system is functioning when it is needed), Performance (throughput divided by its maximum throughput), and Quality (# of good units divided by total units produced). OEE can be used to monitor the efficiency of your manufacturing processes and to help identify areas of improvement.
OEE = Availability x Performance x Quality
Beyond the top 3 CMMS KPI’s
While building performance trends with indicators like MTBF, MTTR, and OEE, so too is checking to see if your organization is practicing healthy maintenance habits with these additional leading indicators.
4. How Effective Is Your Maintenance?
To get a clearer picture of the quality of your maintenance work, take a look at the ratio of planned maintenance to how much reactive maintenance is being performed. This KPI will give your organization a good idea of where maintenance expenses are going.
Preventative maintenance is almost always less costly than reactive maintenance work. It is also helpful to keep track of how many training and refresher courses are being taken each year per maintainer to get an idea of how much energy is being put into keeping those in charge of maintenance up-to-date and knowledgeable.
Your Preventative Maintenance Compliance (PMC) score is the percentage of scheduled PM work orders that get done in a defined time interval. PMC formula is:
PMC % = # Completed Work Orders/# Work Orders Scheduled
5. How Many Work Orders Are Performed on Time?
Evaluating the percentage of condition inspection work orders that are performed on time is a useful indicator of how likely breakdowns are to occur. This is also a simple and inexpensive KPI to utilize with a robust CMMS product.
6. Where Are the Root Causes of Failure Within the Life Cycle?
If the MTBF is indicating poor performance, then the next step is to identify which part of the equipment’s life cycle is causing the issue – the original quality, the severity of day-to-day operations, the quality of replacement pieces, or the actual maintenance workmanship and routine.
Collecting information on why failures are occurring is an important key performance indicator that can help your business adopt better life cycle practices. Could your operators benefit from increased equipment training? Is the machinery breaking down because it is simply too old? Is your maintenance team ensuring that high-quality parts are being used to keep company assets in excellent working condition?
7. The Number of End-User Complaints
Your product is as good as your customers perceive it to be. This is why tracking the number of end-user complaints is an essential KPI for maintenance. In order to understand the true quality of your products, collecting and analyzing user feedback is essential. Effective CMMS software will be easily customizable, allowing your organization to track the important end-user feedback that will help you to be proactive about making positive changes when necessary.
8. Cost of Maintenance per Asset
How much are you spending on maintenance per asset? How do the actual maintenance costs compare to the budgeted costs? Keep track of these numbers to find out where all the resources are being used to maintain your equipment – and to determine if this is money well spent or not.
With the right CMMS KPI’s, your organization can flawlessly manage your assets. It is through the insight that comes from measuring performance that will foster understanding – and therefore effective, positive steps and preventative measures.
You can’t improve what you can’t measure. Contact Eagle Technology to learn how our powerful CMMS product, Proteus, can help your business stay ahead, and in control.