Smart facility managers know that all assets are not created equal. But determining which assets are critical to the workflow and operation of your company can be a challenge. Using key performance indicators (KPI’s) will help you rank asset criticality and create a maintenance strategy that will optimize asset performance, and reduce costs and risks.
Key Performance Indicators (KPI’s) for Maintenance Management
Key performance indicators that are process-related are known as leading KPI’s. Having a well-developed maintenance process forms the foundation for all maintenance functions within the organization. Here are some examples of leading key performance indicators:
- Business goals and objectives
- Identification of maintenance work processes
- Work planning and scheduling
- Execution of maintenance activities
- Maintenance follow-up and analysis
The actual results of your maintenance activities are known as lagging key performance indicators. Lagging KPI’s vary depending on your industry and facility-type, but typically fall under these general categories:
- Asset performance
- Reliability and efficiency ratings
- Repair and failure rates
- Life cycle costs
- Mean time between failure (MTBF) rates
- Safety issues and risks
- Regulatory compliance
- Human safety and well-being
- Environmental issues and risks
- Business objectives, including ROI
Using KPI’s to Determine Asset Criticality
Regardless of the maintenance strategy you currently employ, knowing which assets are critical to your operation and why can optimize operational ROI and reduce costs and risks. Ranking asset criticality depends on your individual facility’s operation and objectives.
Darrin Wikoff, author of an article in ReliablePlant.com, recommends setting up a criticality analysis model:
Step One: Using these business attributes, assign each characteristic a rating from zero to 10, with the total not to exceed 100 for each asset.
- Mission and customer impact
- Safety and environmental impact
- Preventive Maintenance (PM) history
- Corrective Maintenance (CM) history
- MTBF (Mean time between failures) rate
- Failure probability
- Spare parts lead time
- Asset replacement value
- Planned utilization rate
Step Two: Once you have identified the top 15%-20% of your critical assets from Step One, determine the primary characteristic that makes each asset critical. The asset data from your computerized maintenance management system (CMMS) provides asset life cycle costs, repair history, failure modes, and more—depending on the type of system you have—and should give you the data you need.
Step Three: By analyzing the asset data from the CMMS, especially the single-point failure rating, you can adjust your maintenance approach to these important assets, lowering their criticality ranking, and reducing your overall risks.
Every facility manager has their “worse asset nightmare”… asset failure that has serious or even catastrophic consequences. By using key performance indicators to identify and rank critical assets, you can create an effective asset plan. A proactive management strategy, such as a Reliability-Centered Maintenance (RCM) approach, offers the best opportunity to align your maintenance management with organizational goals and objectives. You can prevent and even predict failure modes and optimize asset function and integrity.
Use the CMMS Key Performance Indicators to Manage Asset Criticality
A CMMS can help you track, measure, and prioritize your maintenance management activities:
- Scheduling preventive maintenance (PM) tasks can ensure that assets are managed for optimal performance, including re-assigning and re-scheduling critical asset activities.
- Failure modes and MTBF rates allow you to plan for timely asset replacements before they fail, or ensure that adequate inventory is on hand to minimize downtime.
- Tracking spare parts inventory through your CMMS can prevent repair backlogs or costly delays in production.
- Failure analysis, asset reports, and life-cycle costing data are important tools for adopting maintenance “best practices” and a continuous improvement methodology.
Setting up and using key performance indicators lets you plan, track, and measure asset activity and performance. With an accurate picture of what assets are critical to your organization, you can make sound asset management decisions for both short-term and long-term goals and objectives. Adopting a “plan, improve, control” approach is the best way to ensure optimal asset reliability at optimal cost.
Eagle Technology, Inc. is a leading provider of CMMS and EAM solutions for facility management worldwide. Eagle’s powerful Proteus software can help you lower costs, reduce capital expenditures, and improve asset performance and longevity using a variety of asset management strategies.
We hope that you found this article useful. If you have any questions, comments, or concerns, please feel free to contact one of our team members. Call us at +1 (262) 241-3845 or 1-800-388-3268 (Toll Free US and Canada).