SKF - Measuring Maintenance Performance
SKF - Measuring Maintenance Performance
Summary
This document reviews the purpose of Key Performance Indicators (KPIs) and advocates a
structured approach to their establishment within the maintenance department.
Representative examples of maintenance KPIs are provided, and the relationship between
KPIs and benchmarks is discussed. Examples of maintenance metrics are given that are freely
available in the public domain, along with more potential sources of detailed data.
make the required contribution to the corporate
Statutory checks
result.
Breakdowns
Time-based maintenance
Therefore, effective KPIs require a structured
Life-cycle based maintenance
approach to their formulation. Likewise, effective
Condition monitoring (subjective/objective)
business monitoring demands a well-defined
Safety issues
combination of KPIs that operate at various
Environmental issues
levels of the corporate and departmental
hierarchy. These KPIs must provide individual Inventory control
® SKF is a registered trademark of the SKF Group. © SKF Group 2016
The contents of this publication are the copyright of the publisher and may not be reproduced (even extracts) unless prior written permission is granted. Every care has been taken to ensure the
accuracy of the information contained in this publication but no liability can be accepted for any loss or damage whether direct, indirect or consequential arising out of the use of the information
contained herein.
4.2 KPIs for overall maintenance
However, corporate goals affect the relative performance
priorities assigned to these (and other)
maintenance activities. For this reason, it is In pursuance of financial goals, a maintenance
impossible to arrive at one standardized set of manager needs to assess the quality and
maintenance KPIs that would be applicable in all efficiency of service he provides to the
situations. Therefore, with higher-level organization.
corporate KPIs as a starting point, it is necessary
for each maintenance organization to derive its Performance measures commonly applied
own structured set of KPIs to ensure alignment include various analyses of machinery
with corporate objectives. availability or downtime, such as:
4.1 Financial KPIs for maintenance Available production capacity per unit of
time
Financial indicators relevant to the maintenance Uptime as percentage of total hours
function might include some of the following [1]: operation
Unscheduled downtime as a percentage of
Total maintenance cost total downtime
Maintenance cost per unit of production Cost of breakdown work as a percentage of
Maintenance cost as a percentage of total total maintenance costs
operating costs Maintenance re-work hours as percentage
Maintenance cost as a percentage of sales of total maintenance hours
turnover Value of spares inventory vs. total annual
Maintenance inventory value as a spares cost
percentage of estimated replacement value
Value of asset maintained per maintenance Again, only those measures that are directly
employee relevant to higher-level, financial KPIs should be
employed.
Given the diversity of modern manufacturing
organizations it is not possible to construct a Many companies employ Overall Equipment
definitive KPI list that is applicable in all Effectiveness (OEE) measurements. OEE is the
situations. Only use measures that directly product of plant availability, plant performance
support the corporate goal. In some cases it is rate, and product quality rate. Although this
necessary to define other performance parameter is rooted in the concept of Total
measures that are not included in the list above. Productive Maintenance (TPM), it is increasingly
common for companies to utilize it as an overall
Maintenance cost expressed as a percentage of measure of maintenance performance,
estimated asset replacement value (% ERV) is a irrespective of their adoption of a formal TPM
financial maintenance KPI featured in a growing approach. Perhaps one reason for this is OEE’s
number of organizations. comprehensive nature and the availability of
comparative data through documented
experience gained in TPM application.
PdM activities are often subject to the same 4.8 Inventory management
disruptive influences as other planned
maintenance activities, and may be monitored KPIs involved in the measurement of
using similar parameters. maintenance inventory management often
parallel KPIs employed for management of other
The number of PdM inspections completed inventories (i.e. raw materials, work in progress,
versus the number of PdM inspections or finished goods). However, corporate KPIs
scheduled. This parameter monitors the applicable to the maintenance function may
dictate that different KPIs have relevance to the
® SKF is a registered trademark of the SKF Group. © SKF Group 2016
The contents of this publication are the copyright of the publisher and may not be reproduced (even extracts) unless prior written permission is granted. Every care has been taken to ensure the
accuracy of the information contained in this publication but no liability can be accepted for any loss or damage whether direct, indirect or consequential arising out of the use of the information
contained herein.
maintenance situation. Therefore, it may not be objective of a benchmarking exercise is to
appropriate to employ KPIs used to monitor identify the practices behind the metrics. [2]
inventory management in other business areas.
When a performance indicator can be clearly
4.9 Personal development KPIs and unambiguously aligned with best practice, it
becomes a benchmark that may be employed as
Training hours per maintenance employee a process improvement goal. Benchmarking
Training expense as a percentage of total projects require performance improvements
maintenance expense tracking through KPIs.
9. Conclusion
® SKF is a registered trademark of the SKF Group. © SKF Group 2016
The contents of this publication are the copyright of the publisher and may not be reproduced (even extracts) unless prior written permission is granted. Every care has been taken to ensure the
accuracy of the information contained in this publication but no liability can be accepted for any loss or damage whether direct, indirect or consequential arising out of the use of the information
contained herein.
Measurements of OEE, and maintenance cost as
a percentage of estimated replacement value (%
ERV) are becoming widely accepted as the
maintenance industry’s standard means of
quantifying maintenance performance in an
overall sense. Given the caveat outlined in
section 6 regarding the need for a thorough
understanding and accuracy of the
measurement process, these parameters can
provide good comparative data. However, when
viewed in isolation they do not give any insight
into the means by which performance excellence
is achieved (or, conversely the possible reasons
for underperformance).