KEY

PERFORMANCE
INDICATORS

Measuring and Managing

the Maintenance
Function

Leading and Lagging KPI Chapter

from
“Rules of Thumb for Maintenance and Reliability Engineering Handbook”

By Ricky Smith and Keith Mobley

rsmith@worldclassmaintenance.org
www.worldclassmaintenance.org
 assets can be defined. Manufacturing
performance requirements can be
associated with quality, availability,
customer service, operating costs, safety
Maintenance Key Performance and environmental integrity.
Indicators
To achieve this performance there are three
Introduction inputs to be managed. The first requirement
is Design Practices. Design practices
“It is not possible to manage what you cannot provide capable equipment "by design"
control and you cannot control what you cannot (inherent capability), to meet the
measure!” (Peter Drucker) manufacturing performance requirements.

Performance measurement is a fundamental The second requirement is Operating

principle of management. The measurement Practices that make use of the inherent
of performance is important because it capability of process equipment. The
identifies current performance gaps between documentation of standard operating
current and desired performance and practices assures the consistent and correct
provides indication of progress towards operation of equipment to maximize
closing the gaps. Carefully selected key performance.
performance indicators identify precisely
where to take action to improve The third requirement is Maintenance
performance. Practices that maintain the inherent
capability of the equipment. Deterioration
This paper deals with the identification of begins to take place as soon as equipment
key performance indicators for the is commissioned. In addition to normal wear
maintenance function, by first looking at the and deterioration, other failures may also
ways that maintenance performance metrics occur. This happens when equipment is
relate to manufacturing metrics. Since pushed beyond the limitations of its design
performance measurements for or operational errors occur. Degradation in
maintenance must include both results equipment condition results in reduced
metrics and metrics for the process that equipment capability. Equipment downtime,
produces the results, this document quality problems or the potential for
presents a representation for the business accidents and/or environmental excursions
process for maintenance. The document are the visible outcome. All of these can
then identifies typical business process and negatively impact operating cost.
results metrics that can be used as key
performance indicators for the maintenance
function.

Physical Asset Management

The purpose of most equipment in

manufacturing is to support the production of
product destined to downstream customers.
Ultimately the focus is on meeting customer
needs. This is illustrated in Figure 1.
Customer expectations are normally defined
in terms of product quality, on-time delivery
and competitive pricing. By reviewing the
composite requirements of all current
customers and potential customers in those Figure 1: Managing manufacturing performance
markets we wish to penetrate, the requirements to meet customer needs
performance requirements of our physical
 supply or production scheduling delays
Manufacturing key performance indicators beyond the control of the maintenance
provide information on the current state of function. Asset utilization is also a function
manufacturing. Asset capability, operating of operating rate, quality and yield losses,
practices and the maintenance of asset etc. In each of these areas maintenance
condition all contribute to the ability to meet may be a factor but it is not the only
these performance requirements. contributor. In order to maintain and improve
performance each function in the
Some typical key performance indicators for organization must focus on the portion of the
manufacturing include operating cost; asset indicators that they influence.
availability, lost time injuries, number of
environmental incidents, OEE and asset Similarly, other manufacturing level
utilization. performance indicators are not only a
function of maintenance. They are affected
Consider asset utilization, as depicted in by causes beyond the control of the
Figure 2. Asset utilization is a manufacturing maintenance function. Asset capability,
level key performance indicator. It is a operating practices and the maintenance of
function of many variables. For example, asset condition all contribute to the ability to
asset utilization is impacted by both meet performance requirements. If a
maintenance and non-maintenance related manufacturing level indicator is used to
downtime. Non-maintenance related measure maintenance performance,
downtime may be attributed to lack of improved maintenance may not result in a
demand, an interruption in raw material proportional improvement in the
manufacturing metric. For instance, in the
asset utilization example, cited above, the
maintenance contributors may all be positive
and yet the resulting asset utilization may
not improve due to other causes.

A key principle of performance management

is to measure what you can manage. In
order to maintain and improve
manufacturing performance each function in
the organization must focus on the portion of
the indicators that they influence.
Maintenance performance contributes to
manufacturing performance. The key
performance indicators for maintenance are
children of the manufacturing key
performance indicators.
Figure 2: Asset Utilization is an example of a
manufacturing level key performance indicator.
Key performance indicators for maintenance
are selected ensuring a direct correlation
between the maintenance activity and the
key performance indicator measuring it.
W hen defining a key performance indicator
for maintenance a good test of the metric
validity is to seek an affirmative response to
the question; “If the maintenance function
does ‘everything right’, will the suggested
metric always reflect a result proportional to
the change; or are there other factors,
external to maintenance, that could mask
the improvement?”
This paper focuses on defining key performance indicators for the
maintenance function, not the maintenance organization.

Figure 3: The Asset Reliability Process identifies what's required to manage the maintenance function.

The maintenance function can involve other A proactive Asset Reliability Process,
departments beyond the maintenance represented by the seven (7) elements in
organization. Similarly, the maintenance the model aims to deliver the performance
department has added responsibilities required by the enterprise to meet all of its
beyond the maintenance function and, as corporate objectives. Each element within
such, will have additional key performance the maintenance process is in itself a sub-
indicators to report. The key performance process. A brief description of each element
indicators for the maintenance organization follows:
may include key performance indicators for
other areas of accountability such as health Business Focus, represented by the green
and safety performance, employee box on the left, focuses the maintenance of
performance management, training and physical asset reliability on the business
development, etc. goals of the company. The potential
contribution of the asset base to these goals
The Asset Reliability Process is evaluated. The largest contributors are
recognized as critical assets and specific
The management of physical asset performance targets identified.
performance is integral to business success.
What we manage are the business
processes required to produce results. One Work Identification, as a process,
of these business processes is responsible produces technically based Asset Reliability
for the maintenance of physical asset Programs. Program activities identify and
reliability. The Asset Reliability Process is control failure modes impacting on the
shown in Figure 3. It is an integral part of a equipment's ability to perform the intended
much larger business process responsible for function at the required performance level.
managing the total enterprise.
Activities are evaluated to judge if they are proper W ork Identification, maintenance
worth doing based on the consequences of resources may be wasted. Unnecessary or
failure. incorrect work will be planned. Once
executed, this work may not achieve the
Planning develops procedures and work desired performance results, despite
orders for these work activities. The significant maintenance costs. W ithout
procedures identify resource requirements, Planning the correct and efficient execution
safety precautions and special work of the work is left to chance. The Planned
instructions required to execute the work. Maintenance Process is a cycle.
Maintenance work is targeted to achieve
Scheduling evaluates the availability of all
required asset performance. Its
resources required for work "due" in a
effectiveness is reviewed and improvement
specified time frame. Often this work
opportunities identified. This guarantees
requires the equipment to be shut down. A
continuous improvement in process
review of production schedules is required.
performance impacted by Maintenance.
Resources are attached to a specific work
schedule. The use of resources is balanced W ithin the Planned Maintenance Process
out.
two internal loops exist. Planning,
In the Execution process, trained, Scheduling, Execution and Follow Up make
competent personnel carry out the required up the first loop. Once maintenance
work. activities are initially identified, an asset
maintenance program, based on current
The Follow-up process responds to knowledge and requirements, is initiated.
information collected in the execution The selected maintenance activities will be
process. W ork order completion comments enacted upon at the designed frequency and
outline what was done and what was found. maintenance tolerance limits. The process is
Actual time and manpower, to complete the self-sustaining.
job, is documented. Job status is updated as
complete or incomplete. Corrective work The second loop consists of the W ork
requests, resulting from the analysis of Identification and Performance Analysis
inspection data, are created. Requests are elements. This is the continuous
made for changes to drawings and improvement loop. Actual asset
procedures. performance is monitored relative to the
required performance (driven by business
The process of Performance Analysis needs). Performance gaps are identified.
evaluates maintenance program The ‘cause’ of these gaps is established and
effectiveness. Gaps between actual process corrective action recommended.
performance and the required performance
are identified. Historical maintenance data is Performance Metrics for the Maintenance
compared to the current process Function
performance. Maintenance activity costs are
reviewed. Significant performance gaps are The Asset Reliability Process represents the
addressed by revisiting the W ork collection of ‘all’ tasks required to support
Identification function. the maintenance function. The process is a
supply chain. If a step in the process is
Each element is important to provide an skipped, or performed at a substandard
effective maintenance strategy. Omitting any level, the process creates defects known as
element will result in poor equipment failures. The output of a healthy reliability
performance, increased maintenance costs process is optimal asset reliability at optimal
or both. cost.

For example, W ork Identification Asset Reliability Process measures are

systematically identifies the Right W ork to leading indicators. They monitor if the tasks
be performed at the Right Time. W ithout are being performed that will ‘lead to
results’. For example a leading process It should be noted that variations of these
indicator would monitor if the planning metrics may be defined or additional
function was taking place. If people are performance metrics may be used. The
doing all the right things then the results will metrics presented here provide a clear
follow. The leading ‘process’ indicators are indication if the requirements of each
more immediate than results measures. element are being satisfied and, if not, what
action should be taken to correct the lack of
Result measures monitor the products of the maintenance process adherence.
Asset Reliability Process. Result measures
include maintenance cost (as a contributor Work Identification
to total operating cost), asset downtime due
to planned and unplanned maintenance (as The function of work identification is to
a contributor to availability) and number of identify the ‘right work at the right time.
failures on assets (the measure of reliability:
this can then be translated into mean time 1. Work Requests
between failures). Results measures lag.
Initiating a work request is one method of
Failure is a good example. Typically the
identifying work. Once a work request is
same piece of equipment doesn’t fail day
submitted it must be reviewed, validated and
after day. Take a pump for example. Say the
approved before it becomes an actual work
pump fails on average once every 8 months.
order ready to be planned. If the work
If we improve its reliability by 50% it will now
request process is performing well, the
fail every 12 months. You have to wait at
validation and approval/rejection of work
least 12 months to see the improvement.
requests should occur promptly.
Key performance indicators for the
A suggested measure for the work request
maintenance function need to include both
process is:
leading (maintenance process) measures
and lagging (result) measures. This paper
♦ The percentage of work requests
focuses on identifying both leading and
remaining in “Request” status for less
lagging measures of maintenance
than 5 days, over a specified time period
performance. Collectively, these
(for example the last 30 days). The
measurements are the key performance
world class maintenance expectation is
indicators for the maintenance function.
that most work (>80%) requests would
Reliability Process Key Performance be reviewed and validated within a
Indicators – Leading Measures maximum of 5 days.

W ork requests rely on the random

The maintenance process is made up of
identification of problems or potential
elements. All elements are required to
problems and bringing them to the attention
complete the supply chain. Key performance
of maintenance to address them. In a world
indicators of the maintenance process are
class organization, work identification is not
process assurance measures. They answer
left to chance.
the question ‘how do I know that this
maintenance process element is being
2. Proactive Work
performed well?’ The day-to-day execution
of maintenance is addressed through the The ‘Asset Maintenance Program’ is
seven elements of the Reliability Process; designed to identify potential failure
Business Focus, W ork Identification, W ork conditions, changes in state of hidden
Planning, W ork Scheduling, W ork functions and known age related failure
Execution, Follow-up and Performance causes. The development of the Asset
Analysis. Key performance indicators for Maintenance Program defines the routine
each element are recommended. maintenance tasks that must be executed to
achieve the performance levels required to
meet business requirements. If the ‘Asset
 4. Responsiveness of Planning
Maintenance Program’ is effective, it will Another key performance indicator for
successfully identify and address most planning is the time it takes a work order to
maintenance preventable causes of failure. be planned. A suggested measure of this is:

If the ‘W ork Identification’ function is working ♦ The percentage of work orders in

well, the majority of work performed by ‘planning status’ for less than 5 days,
maintenance would consist of executing the over a specified time period. A world
Asset Maintenance Program (AMP) tasks class performance level of at least 80%
and the corrective work originating from it. of all work orders processed in 5 days or
less should be possible. Some work
The key performance indicator for the work orders will require more time to plan but
identification element is: attention must be paid to 'late finish or
required by date'.
♦ The percentage of available man-hours
used for proactive work (AMP + AMP 5. Quality of Planning
initiated corrective work) over a specified
These key performance indicators for
time period. The world class maintenance
target for proactive work is 75 to 80%. planning do not reflect the quality of the
Recognizing that 5 -10% of available man- planning being done. A critical aspect of
hours should be attributed to improvement planning is estimating resources. The quality
work (non-maintenance) this would leave of planning can be measured by monitoring
approximately 10% - 15% reactive work. the accuracy of estimating. Labor and
material resources are the dominant
Work Planning resources specified on a work order.

The primary function of the W ork Planning The accuracy of estimating labor can be
element of the maintenance process is to measured by:
prepare the work to achieve maximum
efficiency in execution. ♦ The percentage of work orders with
man-hour estimates within 10% of
3. Amount of Planned Work actual over the specified time period.
Estimating accuracy of greater than
In general terms, planning defines how to do 90% would be the expected level of
the job and identifies all the required world class maintenance performance.
resources and any special requirements to
execute the work. A properly planned work A second metric of planning quality,
order would include all this information. addressing material estimates, would be:
Maximizing maintenance efficiency requires
a high percentage of planned work. ♦ The percentage of planned, scheduled
and assigned work orders, where
A measure of whether planning is taking execution is delayed due to the need for
place is: materials (spare parts) over the
specified time period. The world class
♦ The percentage of all work orders, over maintenance expectation is that less
a specified time period, with all the than 2% of all work assigned will have a
planning fields completed (ex. Labor material deficiency (due to
assignments, task durations, work planning).Note: this assumes the job
priority, required by date, etc). The world should not have been scheduled if the
class expectation is that >95% of all jobs materials were not available. Therefore,
should be planned. the problem is that the work order did
not account for all the required
materials.
Work Scheduling

schedule. A second scheduling key

Good planning is a prerequisite to performance indicator measures:
scheduling. The primary function of
scheduling is to coordinate the availability of ♦ The percentage of scheduled available
the asset(s) to be maintained with all the man-hours to total available man-hours
required resources; labor, material and over the specified time period. A world
services creating a schedule to execute ‘the class target of >80% of man-hours
right work at the right time’. The schedule is should be applied to scheduled work.
a contract between operations and It is not desirable to schedule 100% of
maintenance. The ‘right work at the right available man-hours within a schedule
time’ implies that this work must be period, because we recognize that additional
executed within the specified time period to work will arise after the schedule has been
achieve the desired level of performance. cast. This includes both emergency work
Failure to execute within the schedule period and other schedule write-ins that must be
will increase the risk of failure. accommodated during the schedule period.

W ith good work identification, planning and Work Execution

scheduling in place, the weekly maintenance
schedule should be produced several days W ork execution begins with the assignment
in advance of the beginning of the schedule of work to the people responsible for
period. There should be confidence that this executing it and ends when the individuals
schedule reflects the work that will be charged with responsibility for execution
completed through the schedule period. provide feedback on the completed work.

6. Quality of Scheduling
7. Schedule Compliance
A key performance indicator for the
scheduling function is: W ith a high quality of work identification,
planning and scheduling, maintenance
♦ The percentage of work orders, over the resources should execute according to the
specified time period, that have a plan and schedule. Therefore, a key
scheduled date earlier or equal to the performance indicator of execution is
‘late finish or required by date’. A world schedule compliance. Schedule compliance
class maintenance target of >95% is defined as:
should be expected in order to ensure
the majority of the work orders are ♦ The percentage of work orders
completed before their 'late finish or completed during the schedule period
required-by date.' before the late finish or required by date.
W orld class maintenance should
A second measure of the quality of achieve >90% schedule compliance
scheduling is: during execution.

♦ The percentage of work orders assigned 8. Quality of Work Execution

“Delay” status due to unavailability of
W ork execution quality is measured by:
manpower, equipment, space or
services over the specified time period.
♦ The percentage of rework. W orld class
levels of maintenance rework are less
Volume of Scheduled Work
than 3%.
The scheduling of properly planned work is
9. Work Order Completion
also important to maximize maintenance
efficiency. W e would anticipate that a high The purpose of identifying maintenance
percentage of the available maintenance process key performance indicators is to
man-hours would be committed to a help manage the maintenance process. The
ability to successfully monitor and manage ♦ The percentage of work orders closed
the process and measure the results of the within a maximum of 3 days, over the
process is highly dependent on gathering specified time period. The expectation is
correct information during work execution. that >95% of all completed work orders
The vehicle for collecting this information is should be reviewed and closed within 3
the work order. W ork orders should account days.
for ‘all’ work performed on assets. This is
necessary to gather accurate maintenance Performance Analysis
cost and history data, enabling the
management of the physical asset through The performance analysis element of the
its life cycle. maintenance process evaluates
maintenance effectiveness by focusing on
A returned work order should indicate the key performance indicators of maintenance
status of the job (complete, incomplete), the results. Gaps between the actual and
actual labor and material consumed, an required performance of the maintained
indication of what was done and/or what asset are identified. Significant performance
was found and recommendations for gaps are addressed by initiating work
additional work. In addition, information identification improvement actions to close
about process and equipment downtime and the performance gap.
an indication of whether the maintenance
conducted was in response to a failure 11. Presence of Performance Analysis
should be provided.
One indication that performance analysis is
being executed is the existence of the
The idea that the job is not done until the
maintenance result metrics described under
work order is completed and returned is a
the next section of this paper entitled key
significant challenge to many organizations.
performance indicators of maintenance
For this reason it is also important to have a
effectiveness (result measures).
key performance indicator on work order
completion. This metric should look at:
12. Quality of Performance Analysis
♦ The percentage of work orders turned in From a maintenance process perspective it
with all the data fields completed. W orld is important that these results are driving
class maintenance organizations action. Therefore, a key performance
achieve 95% compliance. indicator for performance analysis is a
measure of:
Follow-up
♦ The number of reliability improvement
In the Follow-up element of the maintenance actions initiated through performance
process, actions are initiated to address the analysis during the specified period. No
information identified during execution. absolute number is correct but no
Some key follow-up tasks include reviewing number suggests inaction.
work order comments and closing out ♦ A second measure is the number of
completed work orders, initiating corrective asset reliability actions resolved over the
work and initiating part and procedural last month. In other words, a measure of
updates as required. how successful the organization is in
performance gap closure.
10. Work Order Closure
Timely follow-up and closure of completed
Key Performance Indicators of
work orders is essential to maintenance
success. A key performance indicator for Maintenance Effectiveness (Result
Measures)
follow-up is:
The product of maintenance is reliability. A 5. Non-Operational Consequence – a
reliable asset is an asset that functions at single point failure involving only the
the level of performance that satisfies the cost of repair.
needs of the user. Reliability is assessed by
measuring failure. Therefore, it is important to track:

Failures ♦ The number and frequency of asset

failures by area of consequence. There
The primary function of maintenance is to is no universal standard for this metric
reduce or eliminate the consequences of because of the diversity of industries
physical asset failures. The definition of and even plants within industry
functional failure is anytime that asset segments. It is however reasonable to
performance falls below its required expect a downward trend and to set
performance. Therefore a key performance reduction targets based on current
indicator for maintenance effectiveness is performance levels and business needs.
some measurement of failure on the
asset(s). If the maintenance function is
effective, failures on critical assets and thus Maintenance Costs
their consequences should be reduced or
eliminated. Maintenance costs are another direct
measure of maintenance performance.
Failure consequence impacts manufacturing Maintenance costs are impacted by both
level key performance indicators. Failure maintenance effectiveness and the
classification by consequence identifies the efficiency with which maintenance is
contribution of maintenance function to performed.
manufacturing level performance. Maintenance maximizes its effectiveness by
ensuring that it performs “The Right W ork at
Failure consequences are classified into the the Right Time”. Proactive maintenance
following categories: means intervening before the failure event
occurs. The impact of proactive
1. Hidden Consequence – there is no maintenance is not only to minimize the
direct consequence of a single point safety, environmental and operational
failure other than exposure to the consequences of failure but also to reduce
increased risk of a multiple failure (a the cost of maintenance by reducing
second failure has to occur to secondary damage. For example, if the
experience a consequence). potential failure of a pump bearing was
detected proactively, the catastrophic failure
2. Safety Consequence – a single point
of the bearing could be prevented. The
failure results in a loss of function or
catastrophic failure of the pump bearing
other damage which could injure or kill
would likely result in damage to the casing,
someone.
wear rings, impeller, mechanical seals, etc.
3. Environmental Consequence –a single The corrective repair would require an
point failure results in a loss of function extensive pump rebuild. Utilizing a proactive
or other damage which breaches any task such as vibration monitoring to detect
known environmental standard or the bearing deterioration permits the
regulation; scheduled replacement of the bearing prior
to the occurrence of secondary damage.
4. Operational Consequence – a single
Less secondary damage means that it takes
point failure has a direct adverse effect
less time to repair (labor savings) and
on operational capability (output,
consumes fewer parts (material savings).
product quality, customer service or
The overall effect is the repair costs much
operating costs in addition to the direct
less.
cost of repair).
Maintenance costs are also impacted by It is equally important to measure scheduled
increasing the efficiency of maintenance. downtime. The work identification element of
These efficiency gains are achieved through the maintenance process strives to eliminate
improved planning and scheduling of “the unnecessary scheduled maintenance by
right work at the right time”. Published data focusing on only performing the ‘right work
suggests that companies with estimated at right time’.
wrench times of 25% to 30% can increase
wrench time to between 40% and 60% Through more formal work identification and
through better planning and scheduling. enhanced planning and scheduling
shutdown overruns should be minimized.
There are several useful maintenance cost
related measures: Useful key performance indicators
associated with asset downtime attributable
♦ Maintenance Cost: The target to maintenance are:
maintenance cost depends on the asset
and its operating context (how the asset ♦ Unscheduled downtime (hours)
is applied and used). ♦ Scheduled downtime (hours)
♦ Maintenance Cost / Unit Output: The ♦ Shutdown overrun (hours)
target maintenance cost depends on the
asset and its operating context (how the Note: It is useful to distinguish between ‘equipment
asset is applied and used). down’ where a specific piece of equipment is
unavailable and ‘process down’ where production has
♦ Maintenance Cost / Replacement Asset stopped.
Value of Plant and Equipment: This
metric is a useful benchmark at a plant The Importance of the Work Order
and corporate level. The world class
benchmark is between 2% and 3%. Implementation of the suggested key
♦ Total Maintenance Cost / Total performance indicators for the maintenance
Manufacturing Cost: This metric is a function requires a reliable source of data on
useful benchmark at a plant and asset failures, maintenance costs and
corporate level. The world class downtime. Any time maintenance is
benchmark is <10% to 15%. performed on an asset a record should be
♦ Total Maintenance Cost /Total Sales: kept. The vehicle for collecting this data is
This metric is a useful benchmark at a the maintenance work order.
plant and corporate level. The world
class benchmark is between 6% and W henever maintenance is performed
8%. against an asset, work order completion
data should include the following
Maintenance Related Downtime information:

The maintenance function’s impact on asset ♦ Identification of the asset at the level in
availability is through minimizing downtime the asset hierarchy where the work was
attributed to maintenance. This includes performed.
both scheduled and unscheduled ♦ Date, time and duration of the
maintenance related downtime. A key maintenance event.
objective of proactive maintenance is to ♦ An indication if failure has occurred: yes
identify potential failures with sufficient lead- or no (no if proactive)
time to plan and schedule the corrective ♦ W hen failure has occurred, identification
work before actual failure occurs. If the of the failure consequence: {hidden,
maintenance function is successful safety, environment, operational
unscheduled maintenance related downtime (product quality, throughput, customer
will be reduced. service, operating costs) or non-
operational involving only the cost of
repair only}
♦ actual costs (labor, materials, services, failures translates into poor manufacturing
etc) performance.
♦ process downtime (loss of production)
♦ asset downtime (equipment out of Therefore, maintenance, reliability,
service but process still able to produce) engineering and operations need to work
Queries in your computerized maintenance together to define and measure the leading
management system can then be developed indicators for the Asset Reliability Process
to track and report key performance (the seven elements required to support the
indicators for asset failure, maintenance maintenance function). The result will be
costs and downtime. optimal asset reliability at optimal cost – the
output of a healthy Asset Reliability Process.
Reporting and Use of Key Performance
Indicators

Key performance indicators should be

aligned with defined roles and
responsibilities for the maintenance function
against the assets for which they apply. For
example, a planner responsible for ‘Area A’
would be responsible for the planning
function key performance indicators for the
‘Area A’ assets.

The manager responsible for ‘Area A’ assets

would monitor all process and result metrics
for Area A. Each metric should roll up the
asset hierarchy, in alignment with individual
responsibility for the assets. Management
action is directed at improving compliance
with the requirements of Work Identification,
Planning, Scheduling, Execution and Follow-
up. In this way, the process is managed
leading to world class results. This logic is
repeated at each level of management in the
organization. At the plant and/or corporate
level, management is exercising
accountability for plant-wide maintenance
metrics, both process and results.

Conclusion

Maintenance and reliability business

process metrics (leading indicators) provide
a clear indication of compliance to the
maintenance business process. They
indicate where to take specific action
because of a gap in the way maintenance is
being performed.

This gap in the execution of the

maintenance process will ‘eventually’ lead to
asset failure(s). The consequence of these
 Appendix 1: Summary of Maintenance Key Performance Indicators
Type of Measuring Key Performance Indicator W orld Class Target Level
Measure
Result
1 Cost Maintenance Cost Context specific
Lagging
Result Maintenance Cost / Replacement
2 Cost 2 - 3%
Lagging Asset Value of Plant and Equipment
Result Maintenance Cost / Manufacturing
3 Cost < 10 – 15%
Lagging Cost
Result
4 Cost Maintenance Cost / Unit Output Context specific
Lagging
Result
5 Cost Maintenance Cost / Total Sales 6 - 8%
Lagging
Result
6 Failures Mean Time Between Failure (MTBF) Context specific
Lagging
Result
7 Failures Failure Frequency Context specific
Lagging
Result Unscheduled Maintenance Related
8 Downtime Context specific
Lagging Downtime (hours)
Result Scheduled Maintenance Related
9 Downtime Context specific
Lagging Downtime (hours)
Result Maintenance Related Shutdown
10 Downtime Context specific
Lagging Overrun (hours)
80% of all work requests should be
processed in 5 days or less. Some
Percentage of work requests remaining
Process Work work requests will require more time
11 in “Request” status for less than 5
Leading Identification to review but attention must be paid
days, over the specified time period.
to 'late finish date' or required by
date.
Target for proactive work is 75 to
Percentage of available man-hours 80%. Recognizing 5 -10% of available
Process Work used for proactive work (AMP + AMP man-hours attributed to redesign or
12
Leading Identification initiated corrective work) over a modification (improvement work) this
specified time period. would leave approximately 10% -
15% reactive.
Percentage of available man-hours
Process Work Expect a level of 5 to 10% of man-
13 used on modifications over the
Leading Identification hours spent on modification work.
specified time period.
Percentage of work orders with man- Estimating accuracy of greater than
Process
14 Work Planning hour estimates within 10% of actual 90% would be the expected level of
Leading
over the specified time period. performance.
95% + should be expected. Expect a
Percentage of work orders, over the
Process high level of compliance for these
15 Work Planning specified time period, with all planning
Leading fields to enable the scheduling
fields completed.
function to work.
Percentage of Work Orders assigned
Process, “Rework” status (Due to a need for
16 Work Planning This level should not exceed 2 to 3%.
Leading additional Planning) over the last
month.
80% of all work orders should be
Percentage of Work Orders in “New” or possible to process in 5 days or less.
Process,
17 Work Planning “Planning” status less than 5 days, Some work orders will require more
Leading
over the last month. time to plan but attention must be
paid to 'late finish date'.
Percentage of work orders, over the 95%+ should be expected in order to
Process, Work specified time period, having a ensure the majority of the work orders
18
Leading Scheduling scheduled date earlier or equal to the are completed before their 'late finish
late finish or required by date. date.'
Percentage of scheduled available
Process, Work Target 80% of man-hours applied to
19 man-hours to total available man-hours
Leading Scheduling scheduled work.
over the specified time period.
Percentage of Work Orders assigned
Process, Work “Delay” status due to unavailability of This number should not exceed 3 to
20
Leading Scheduling manpower, equipment, space or 5%.
services over the specified time period.
 Type of Measuring Key Performance Indicator W orld Class Target Level
Measure
Percentage of Work Orders completed Schedule compliance of 90%+ should
Process, Work
21 during the schedule period before the be achieved.
Leading Execution
late finish or required by date.
Process, Work Percentage of maintenance work
22 Rework should be less than 3%.
Leading Execution orders requiring rework.
Percentage of work orders with all data Should achieve 95%+. Expectation is
Process, Work
23 fields completed over the specified that work orders are completed
Leading Execution
time period. properly.
Percentage of work orders closed Should achieve 95%+. Expectation is
Process, Work
24 within 3 days, over the specified time that work orders are reviewed and
Leading Follow-up
period. closed promptly.
No number is correct but level of
Number of asset reliability
relative activity is important. No
Process, Performance improvement actions initiated by the
25 actions being initiated when lots of
Leading Analysis performance analysis function, over
performance gaps exist is
the specified time period.
inappropriate.
Number of equipment reliability
Process, Performance improvement actions resolved, over
26 This is a measure of project success.
Leading Analysis the specified time period. (Did we
achieve performance gap closure)

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September 13-15, 2022
Need more information? Email me at rsmith@worldclassmaintenance.org
 Appendix 2: Example of How Maintenance KPI’s Are Used
Maintenance Process Key Performance Indicators

Maintenance Results (Lagging) Key Performance Indicators

Maintenance Benchmarks
- Number of functional failures
1) Total
2) Sub-total by Failure Consequence
- Maintenance Cost / Unit Output
Hidden Safety
Environmental
- % Maintenance Cost / Replacement Asset Value Operational
Quality
- % Total Maintenance Cost / Total Manufacturing Cost Output
Customer Service
- % Total Maintenance Cost / Total Sales Operating Cost
Non-Operational (only cost of repair)
- Maintenance related downtime
1) Unscheduled downtime (hours)
2) Scheduled downtime (hours)
3) Shutdown overruns (hours)
Note: Key performance indicators are summarized and - Maintenance cost
reported for all assets at the level of organizational 1) Total maintenance cost
responsibility .

Work Identification Work Planning Work Scheduling Work Execution Follow-up Performance Analysis

- % work orders - trend number of

- % planned work - % work orders with - % work orders
- % proactive work completed during the asset reliability
a scheduled date closed within x days
- % work orders with schedule period improvement actions
- % improvement less than or equal to
labor estimates (schedule initiated
work 'required by' date.
- % work requests in within 10% of actuals compliance)
- track number of
request status < x - % work orders - % of scheduled - % rework asset reliability
days requiring rework due available man-hours improvement actions
to planning to total available - % of work orders resolved
man-hours with alll work order
- % work orders in completion data
planning status < x - % work orders fields completed
days assigned 'delay'
status due to the
unavailability of
manpower, materials,
equipment, space or
services

Maintenance Process (Leading) Key Performance Indicators

15