The Journey to Maintenance Excellence: Key Performance Indicators

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There are entire books written about key performance indicators (KPIs), and the Society for Maintenance & Reliability Professionals (SMRP) has done extensive work on them. The important thing is that you select a few critical KPIs that will help improve your operation. There are two types, leading and lagging, and you should use both. PM-schedule completion is a good leading indicator of future equipment reliability (lower unplanned downtime), while unplanned downtime is a lagging indicator of the success of your current asset-care strategy.

In the case of work processes, the following are important KPIs:

  • Percent of labor captured on work orders
  • Work-Schedule attainment
  • PM-Schedule attainment
  • Labor hours by work type
  • Corrective-Maintenance items found per 100 PM executed

The chart below illustrates where your labor is consumed. You also want to know the trend.

PIE

 

 

 

 

 

The following are important KPIs that the planner can provide data for or manage:

  • Backlog size and age
  • Planning time accuracy
  • Jobs kitted
  • Planned and unplanned downtime
  • Downtime trend

Planners should not get involved with doing technician work, job assignments, daily schedule coordination, emergency or urgent work, staffing the storeroom, or supervising contractors or technicians. This work should be done by other appropriate people, mostly maintenance supervisors and storeroom staff.

The following are some of the storeroom KPIs, and they should be run on a daily, weekly, and monthly basis:

  • Inventory value
  • Inventory activity
  • Service levels
  • Inventory turns
  • Inventory record accuracy (IRA)
  • Storeroom value
  • Percent of asset-replacement value

Each year, the KPIs being used should be reviewed and changed as needed to better fit maintenance goals with company goals.

Feel free to comment below or give us a call if you need any further assistance: 262-783-6260 generic Ponstel Or visit our website: www.peakis.com

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The Journey to Maintenance Excellence: Systems Support

 

Many organizations are only using their CMMS/EAM as a record-keeping tool. If that is all they want, then perhaps a spreadsheet can suffice. A CMMS/EAM is a “tool” that goes far beyond record keeping. By not fully utilizing the CMMS/EAM, maintenance operations are missing out on opportunities to save time and money. As the utilization of CMMS/EAM increases, overall productivity and profitability also increase.

It is vital that you know the full functionality of your CMMS/EAM and plan ways to improve your use of it in the future. A properly implemented CMMS/EAM will increase overall productivity by improving work process flow, helping you migrate from a reactive to a proactive mode, and by incorporating useful features like preventive-maintenance optimization and trending analysis.

A well-utilized CMMS/EAM facilitates day-to-day operations, resulting in efficiencies that are not possible with manual systems. It produces reliable information to enable you to make informed decisions at all levels of the operation, including requesters, maintenance technicians, service managers, and corporate management. This allows for operation-wide optimizations and accountability.

It is crucial that the fundamentals are in place (work processes, storeroom, etc.) before addressing technology. If the fundamentals are not in place, adding technology will not help your operation.

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The Journey to Maintenance Excellence:Master Data (Part II)

Data Gathering

Data gathering is a crucial part of CMMS/EAM implementation. In this process, data is gathered on each piece of equipment. PM and safety procedures, parts information, vendor information, and employee information also need to be defined and implemented in the CMMS/EAM. Maintenance operations often attempt this with their existing manpower; however, in most cases they are already short on manpower, so this is not a feasible alternative. Data gathering is a massive undertaking, and in some cases gathering and entering the data yourself could take four to five years to complete. A major reason 80% of CMMS implementations nationwide have failed in the past is a lack of expertise and sufficient manpower for data gathering and entry. If your operation requires data gathering, you should consider hiring an experienced outside firm.

Data Cleansing

Before existing data can be transferred to a new CMMS/EAM, it needs to be cleansed so that corrupt data is not transferred to the new system. In existing systems, data often gets corrupt after five to ten years and also needs to be cleansed. In this process, the data is carefully reviewed for accuracy, spelling errors are corrected, and letter casing is uniformly converted to upper case. The data is normalized following a specific style guide so that manufacturer/supplier names, attribute values, abbreviations, units of measurement, etc., are consistent. Noun/modifiers are assigned to parts in order to aid in identification and part grouping. Duplicates are identified using a mixture of software, database queries, and manual inspection and are then removed. Descriptions are then rearranged to follow a consistent order.

Data Classification

The data-classification process, which involves categorizing data to increase its usefulness and efficiency, is crucial for an effective CMMS/EAM implementation. Depending on the needs of the maintenance operation, the data is classified to a variety of popular, global-standard schema (such as eCl@ss, UNSPSC, MESC, SMD, NAICS, NIGP, etc.) or to in-house/proprietary schema. Specific configuration requirements of the CMMS/EAM, such as field name, character limitation, and type, will have to be considered when determining formatting.

Data Enrichment

During the data-enrichment process, all possible critical information is collected in order to improve the quality and usefulness of the data. Data will likely have to be collected from a variety of sources. Web research can be conducted and information can be sourced from the manufacturer websites. If web research does not yield any results, the suppliers can be directly contacted (by email, phone, or fax) for additional data. A manual plant walk-down, in which data is collected from various sources within the plant (such as stores, item master, purchase orders/requisitions, codification rules, tags, nameplates, catalogs, etc.), may also be required. During the plant walk-down, technical data such as measurements are also gathered.

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The Journey to Maintenance Excellence: Master Data (Part I)

Complete, clean, and accurate asset, parts, and vendor data provide the foundation for a world-class maintenance operation. No matter how good your CMMS/EAM is, it is only as good as the data that is in the system. Without clean, accurate, and quality data, your operation will experience a variety of negative consequences, including (but not limited to) unidentifiable items, duplication, excess inventory, increased equipment downtime, increased emergency purchases, and false stock-outs. These problems can cost your operation a significant amount of wasted time and money and prevent you from making informed, data-driven decisions.

The following scenarios illustrate just a few of the consequences of inconsistent, inaccurate, and poor-quality data:

  • Scenario 1: When workers are searching for a part, inconsistent data description can cause frustration and wasted time, resulting in delays in scheduling and decreased profit margins.
  • Scenario 2: When workers cannot find parts, you will experience an increase in duplicate parts as new parts are requested, resulting in a bloated inventory.
  • Scenario 3: If a worker is searching for a part for emergency maintenance work, the time wasted can cause costly delays as the equipment downtime is extended. The situation may even require emergency parts ordering and expedited shipping, which further increase costs.
  • Scenario 4: If workers cannot easily find the parts data that they need, there is a high probability that they will not complete work orders accurately, leaving you unable to utilize key-performance-indicator (KPI) analysis for parts usage.
  • Scenario 5: When workers perform physical cycle counts, duplicate part records can cause duplicate work and inaccurate counts, resulting in increased MRO costs.
  • Scenario 6: Because inconsistent and poor-quality data cause inaccurate transactional data, it will be impossible to make necessary adjustments to min/max levels because the parts-usage history will be inaccurate.

There are four main processes to establishing, maintaining, and improving master data:

  • Data gathering
  • Data cleansing
  • Data classification
  • Data enrichment

Each of these processes can be a substantial undertaking, and many maintenance operations lack the available manpower and expertise required to complete them successfully. For these reasons, you should seriously consider hiring an experienced outside firm that can complete these processes in a much shorter amount of time and that can use their expertise to develop quality procedures that will save time in the long term.

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The Journey to Maintenance Excellence: Reliability Improvement (Part II)

Classifying Work

 

All work should have a classification scheme that allows for data mining in order to provide the nature of work done on the asset and what the problems are. This needs to be carefully planned at the beginning of the improvement process and should not be so extensive that it is difficult to analyze.

Whatever designations or codes your operation chooses, they must be accompanied by clear definitions on their use, including by whom and under what circumstance. This leads to granularity and standardization of data that eventually provides useful diagnostic information.

If the equipment is not reliable as is required, then a change can be made to the PMs in order to fix the gap. This effort should also be signed-off by operations and maintenance. This constant review of the effectiveness of a PM program is essential to the sustainability of maintenance excellence.

When you are developing your asset-care strategy, it should have availability, mean time between failures (MTBF), mean time to repair (MTTR), or other performance goals defined. As time goes on, some of the equipment will not meet your goals. These pieces of equipment are commonly referred to as “bad actors.” Operations should be a part of this selection as they may have their own criteria or priorities. We find it is a good practice to maintain a “Top-10” list of bad actors and to develop a strategy for each of them. The strategy may be to replace, rebuild, redesign, or change the asset-care strategy. When changes are made, the results must be monitored in order to determine if they are effective.

Once the bad actors are identified and the data is gathered, a structured problem-solving method should be used. There are many methods available, from “5 Whys” to failure mode and effects analysis (FMEA). We have also found that doing this work in a small equipment-improvement team (EIT) can be effective and works best when including the operators.

Once a problem is solved, real productivity can be created by applying the solution to other identical or similar equipment. This disciplined problem solving will also have the benefit of improving morale and the skills of the technicians and operators who are involved.

We have found that having a reliability engineer is an extremely valuable asset since that person can lead the PM, PdM, CM, and PMO efforts. This person can also help in problem solving bad-actor equipment and can lead EITs. This person can also be on the capital-acquisition committee and can represent maintenance in getting new equipment with proper specs, document, and OEM training.

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The Journey to Maintenance Excellence: Reliability Improvement (Part I)

In order to get the most out of reliability-improvement, it must be carefully planned. Success involves more than simply hiring engineers and telling them to go out and “fix reliability.”

Start with the data. While the fact that data drives reliability improvement may seem obvious, it’s not uncommon for companies to either not have data or have data that’s not easily mined from their CMMS/EAM systems. The following activities are crucial to undertake prior to embarking on a reliability-improvement initiative:

  • Ensure that appropriate, best-practice work processes are in place to collect data
  • Ensure that work is classified in a way that it can be mined in order to understand problems
  • Identify key performance indicators (KPIs) that can point to potential opportunities
  • Establish KPIs to gauge how well the preventive (PM) and predictive (PdM) maintenance programs perform

The work-order work process is the most fundamental element of successful maintenance. All work must be captured and must include labor, materials, contractors, and other expenses that go into maintaining plant equipment. This information must be accurate, and the type of work being done must be coded carefully.

A second key area is ensuring that all work goes through a planning-and-scheduling process so that needed work is agreed to by operations and executed systematically. This means that all PM and PdM work will go through this process.

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The Journey to Maintenance Excellence:Storeroom Integration (Part II)

 

Another key process to ensure maintenance efficiency is job kitting. Before a job is scheduled and assigned to be executed, the parts should be placed in a kit and perhaps delivered to the job site. This is another area where standard jobs can be valuable because you can look at what was actually used on the job and make that the kit.

Discipline is needed when running a storeroom. Every day, certain standard activities are likely to take place: receiving parts, putting parts away, picking parts, performing cycle counts, etc. As the year goes on, other items need to be done: annual counts, reports on potentially obsolete parts, rearrangements to make picking more efficient, etc. All of these should be part of the storeroom staff’s job assignment, and most should be tracked by KPIs.

Effective MRO buying is also essential to maintenance efficiency. The best practice is to have the MRO buyer run a reorder-point report daily, review it, get necessary approvals, and issue purchase orders to suppliers for needed materials. There are other reports like orders due or past due that also need attention. The MRO buyer is often the person who will also see that parts that need to be expedited are procured.

All of the staff who are involved with material delivery to the maintenance operations need to have their jobs well defined, tools to do their job, and KPIs to help them understand their performance and if things are getting better or not.

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The Journey to Maintenance Excellence: Storeroom Integration (Part I)

 

Storeroom and maintenance, repair, and operations (MRO) buying are other important pieces of maintenance excellence. The goal is to have the parts availability to support the asset-care strategy. Everyone within the maintenance operation will find that they have to have some parts stored on-site. How this material is handled and how much inventory is needed will depend on how effective your maintenance program is.

There are many areas that need attention:

  • Storeroom numbering scheme
  • Storeroom layout and material placement
  • Identification of slow-moving, critical, and obsolete materials
  • Storeroom access
  • Storeroom staffing
  • Storeroom and MRO-buyer work processes
  • Material delivery and receiving
  • Interface between the storeroom and maintenance work processes
  • Kitting, warranty recovery, and rebuildable-material process
  • Establishing an annual and cycle-count process
  • Establishing key performance indicators (KPIs)

When creating a storeroom, it is important that it is carefully designed, that the staff is trained, and that it is supported with a CMMS/EAM system. Materials must be stored in an environment where they can be kept for some time without being degraded, and they must be secure so that adjustments are kept to a minimum when counts are compared to the system quantity.

One of the most important processes is that parts must be charged when they leave the storeroom. It is best practice to charge the parts to the work order and to decrement the parts from the inventory when the work order is closed. The technologies available for storerooms are extensive and constantly changing. Traditional shelving and human staffing in a wire-fence storeroom is being replaced with vending machines or RFID tagged items that can be scanned into mobile devices by the technician. Whatever technology you use, the basics still remain the same. You must be able to reliably find the right part quickly, it should be of adequate quality, and it should be charged against the cost of maintaining the asset.

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The Journey to Maintenance Excellence:
Preventive and Predictive Maintenance, Preventive-Maintenance Optimization, and Corrective Maintenance (Part III)

Corrective Maintenance

Corrective maintenance (CM) will mostly come from findings during the various PM activities, and like PM, CM should represent about 40% of total maintenance labor hours. Of course the value of the more predictive approaches is best because it gives you a longer lead time to plan and schedule corrective actions. Operators are a great source of predictive maintenance that will drive corrective work. Operators often get ignored and then stop communicating useful information. Encourage them by listening to them and addressing the things that are likely to create unexpected downtime or problems. Some time can be spent educating the operators so that they become even better sources of information.

Of course, it is important not to forget about your technicians. They may have an assigned walkthrough or simply do a walkthrough as part of their normal day. They will see things that need to be done in order to avoid future problems too. Encourage them to put in work requests so that any required work that they see gets reviewed.

Another good practice is to capture and standardize CM work. It is very likely that a CM task will be repeated or something very similar will be done in the future. Therefore, it is important to capture the jobs, tasks, hours, materials, etc., and to use this information to create “standard jobs.” This will allow the planners to create work plans more quickly and effectively in the future.

It is likely that another 10% of your labor will be consumed by shop-floor support of various types as well as some continuous-improvement work. This is an area that should be monitored closely so that it does not get out of control. The final 10% will likely be for emergency or urgent work. These sources of work represent opportunities for improvement. A disciplined problem-solving approach needs to be taken to emergency and urgent work in order to see how it can be eliminated or mitigated. Your maintenance response to these situations should also be reviewed. High-reliability organizations are characterized by having high resilience. This means that even though bad things unexpectedly happen, you are able to quickly and effectively handle the situation without loss of execution of your planned work.

In most U.S. plants it is not uncommon for emergency/urgent calls to represent 50% or more of the workload, and when analyzed closely about 50% of that work is operator induced. The other 50% may be the result of equipment design, poor maintenance practices, or workmanship. The following are key things in this area for both operators and maintenance technicians to review:

  • Training and cross-training
  • Work instructions
  • Visual aids
  • Use of standard work

Timely corrective maintenance will save your company a significant amount of money.

Feel free to comment below or give us a call if you need any further assistance:
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The Journey to Maintenance Excellence: Preventive and Predictive Maintenance, Preventive-Maintenance Optimization, and Corrective Maintenance (Part II)

Preventive-Maintenance Optimization

Our experience is that a top-notch Preventative-Maintenance program can be developed relatively quickly. About 90% of all the equipment failures you will experience will occur within about three years of installation. Preventative-Maintenance programs can be adjusted and optimized using this data. It is important to analyze failures that do occur in order to see what countermeasures can be put into place so that the same failures do not recur.

PM programs too often become outdated. After a big failure occurs, it is common to see Preventative-Maintenance programs added without understanding the failure mode and ensuring that the “fix” actually addresses the failure. Equipment failures also change over time as the processes change and as the equipment ages.

The flow diagram below illustrates how a Preventative-Maintenance program can be improved through preventive-maintenance optimization (PMO).

PMO

 

 

 

 

 

 

There are several benefits to PMO:

  • Improved production capacity (less planned and unplanned downtime)
  • Optimum maintenance staff
  • Increased maintenance capacity, allowing for more valued-added maintenance or the ability to support more assets with the same number of employees
  • Greater credibility to maintenance
  • Raised professionalism of the maintenance staff

Feel free to comment below or give us a call if you need any further assistance:
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