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Operational Performance and Service Reliability

Operational performance deals with the speed and consistency of order fulfillment. It can be measured using key performance indicators like equipment uptime, mean time between failures, and mean time to repair. The main goals of operational performance include reducing costs, improving quality, increasing employee satisfaction, and boosting productivity and efficiency. Service reliability refers to the ability to maintain a consistent level of performance over time. It is measured by metrics such as mean time between failures, mean time to repair, and mean time to recovery. Ensuring high service reliability is important for meeting customer expectations.

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27 views4 pages

Operational Performance and Service Reliability

Operational performance deals with the speed and consistency of order fulfillment. It can be measured using key performance indicators like equipment uptime, mean time between failures, and mean time to repair. The main goals of operational performance include reducing costs, improving quality, increasing employee satisfaction, and boosting productivity and efficiency. Service reliability refers to the ability to maintain a consistent level of performance over time. It is measured by metrics such as mean time between failures, mean time to repair, and mean time to recovery. Ensuring high service reliability is important for meeting customer expectations.

Uploaded by

ashleyaxie11
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Operational Performance and Service Reliability

Operational Performance

Deals with elapsed time from order receipt to delivery. Involves delivery speed
and consistency. A firm’s operational performance can be viewed in terms of
how flexible it is in accommodating unusual and unexpected customer requests.

What is operational performance?


Operational performance measures how well a company performs its core business
activities. It's measured using key performance indicators (KPIs), usually quantifiable
measures of a process, process step, or program.

How do you measure operational performance?


A maintenance team can measure operational performance through various key
performance indicators (KPIs) and metrics that reflect their maintenance activities'
efficiency, effectiveness, and overall success. Here are some standard maintenance
metrics that are used to measure operational performance:

1. Equipment uptime: This metric measures the percentage of time that equipment is
available and operational. It helps assess the team's ability to keep critical assets
running and indicates their effectiveness in preventing and resolving downtime issues.
2. Mean time between failures (MTBF): MTBF calculates the average time between
equipment failures. It helps gauge reliability and maintenance effectiveness by
measuring how long equipment operates without experiencing failures.
3. Mean time to repair (MTTR): MTTR measures the average time required to
restore equipment to full functionality after a breakdown. A lower MTTR indicates
efficient maintenance processes and quick response to failures.
4. Overall equipment efficiency (OEE): OEE is a comprehensive metric that
combines availability, performance, and quality to measure the overall effectiveness of
equipment. It considers factors such as uptime, production speed, and product quality
to provide insights into equipment performance and maintenance efficiency.
5. Planned vs. unplanned maintenance ratio: This ratio compares the time and
effort spent on planned maintenance activities (routine inspections, preventive
maintenance) versus unplanned maintenance (breakdowns, emergency repairs). A
higher proportion of planned maintenance suggests effective maintenance planning and
proactive measures.
6. Maintenance backlog: This metric measures the number of pending maintenance
tasks or work orders. A high backlog may indicate a resource or planning issue,
potentially leading to delays and decreased operational performance.

What are the main objectives of operational performance?


The main operational performance objectives can vary depending on the organization
and industry. However, some common goals include:

 Reducing costs: Controlling costs is a crucial objective for organizations.


Operational performance seeks to identify opportunities for cost reduction, such
as streamlining processes, eliminating inefficiencies, and optimizing resource
allocation.
 Improving quality: Maintaining and enhancing product or service quality is a
fundamental objective. Operational performance aims to reduce defects, errors,
and rework while ensuring consistent and reliable outputs that meet or exceed
customer expectations.
 Increasing employee satisfaction: Operational performance objectives also
encompass the well-being and development of employees. This includes
fostering a positive work environment, promoting employee engagement, and
providing training and development opportunities to enhance skills and
knowledge.
 Increasing productivity and efficiency in your organization: This leads to
increased profitability for the business. It involves maximizing output while
utilizing the available resources efficiently. Organizations can achieve higher
production levels by improving productivity and delivering more value to
customers.

Service Reliability

Service Reliability involves the quality attributes of logistics. For logistics


performance to continuously meet customer expectations, it is essential that
management be committed to continuous improvement. It can also be related
to the quality management service that the organization offers. In the view of
Marketing, this can be viewed as how the customer foresee the company that it
can lead to a Word-of-the-Mouth Marketing strategy where customer says good
feedback to another potential market or customers.

What is service reliability?


Service reliability is a method for measuring the probability that a system, product, or
service will maintain performance standards for a specific period of time.

Most important aspects of reliability


Some of the most important aspects of reliability include:

 Probability of mission success

 Performances will maintain their intended function or purpose

 Service levels are performed to a specific degree of compliance and


expectation

 Service levels are maintained over a specific period of time, be it


minutes, days, months, or cycles

 The specified conditions within service level expectations are being


met

Examples of service reliability


There are several ways to measure the probability of system failures that will have
relevant impacts on your system. A few common service reliability metrics include:
 Mean time between failures
o MTBF represents the average time between system failures or
breakdowns. It is a crucial aspect of maintenance to measure the
performance, design, and safety of important systems, such as generators
or transportation vehicles.
 Mean time to repair
o MTTR shows the average time it takes to repair a technical or mechanical
system, which includes both times to repair as well as testing time.
 Mean time to recovery
o MTTR (recovery) is a metric that represents the time it takes to recover
from any system failures. Unlike repair time, MTTR takes into account how
long it takes for products or systems to become fully operational again.
 Mean time to resolve
o MTTR (resolve) refers to how long it took to detect the failure, assess the
issue, repair the issue, and also any time spent on ensuring that it isn’t a
recurring failure. This, unlike the previous metrics, takes into account the
long-term implications of failures and failure prevention.
References
Fiix. (2023, August 15). What is operational performance? | Glossary | Fiix.
https://fiixsoftware.com/glossary/what-is-operational-performance/
#:~:text=Operational%20performance%20measures%20how%20well,%2C
%20process%20step%2C%20or%20program.
Sumo Logic, Inc. (2023, March 16). Service reliability - definition & overview. Sumo
Logic. https://www.sumologic.com/glossary/service-reliability/#:~:text=reliability
%20you%20need-,What%20is%20service%20reliability%3F,a%20specific%20period
%20of%20time.

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