Maintaining operational excellence is more than just keeping machinery running; it’s about strategically tracking the right key performance indicators (KPIs). By focusing on essential maintenance KPIs, organizations can enhance asset reliability, minimize downtime, and optimize resource allocation. In this blog post, we will explore the most crucial maintenance KPIs that every organization should monitor to achieve peak performance and operational efficiency.
An introduction to maintenance management
Maintenance management is a strategic approach focused on optimizing the maintenance operations of an organization to ensure asset reliability and operational efficiency. By diligently tracking KPIs, maintenance management provides insights into the effectiveness of maintenance activities and highlights areas for improvement.
This data-driven approach allows organizations to make informed decisions that enhance maintenance processes, reduce unplanned downtime, and minimize costs associated with repairs and equipment failures. Effective maintenance management also emphasizes continuous improvement, encouraging teams to refine their strategies and adapt to evolving operational needs.
What are maintenance KPIs?
Maintenance key performance indicators are measurable values used by organizations to evaluate the efficiency and effectiveness of their maintenance operations. These KPIs serve as critical benchmarks that provide insights into various aspects of maintenance activities, such as equipment reliability, downtime, maintenance costs, and overall operational efficiency.
The primary purpose of maintenance KPIs is to facilitate informed decision-making by offering a clear understanding of how well maintenance objectives are being met. By tracking these indicators, organizations can identify areas for improvement, optimize resource allocation, and ensure that maintenance practices align with broader business goals.
12 maintenance KPIs to track for optimal performance
Understanding which maintenance KPIs to track can significantly enhance the performance and reliability of your equipment. By focusing on the right maintenance metrics, you can gain valuable insights into your maintenance operations, streamline processes, and make informed decisions that optimize your overall productivity. Here are the top 12 maintenances KPIs that are key for maintaining optimal performance and peak operational efficiency:
1. Mean time between failures (MTBF)
A) What it measures:
Mean time between failures (MTBF) measures the average duration that equipment operates without experiencing a failure. Essentially, it serves as an indicator of an asset’s reliability by providing insights into how long machinery can function effectively before requiring repairs.
B) How to calculate it:
MTBF = Total operating time / Number of failures
C) Example calculation:
If a machine operates for 1,000 hours and fails 5 times, then:
MTBF = 1,000 hours / 5 failures
MTBF = 200 hours
D) Benchmark:
A high MTBF indicates reliable equipment. Industry benchmarks vary based on equipment type, but a higher value is generally preferable, indicating less frequent failures.
2. Mean time to failure (MTTF)
A) What it measures:
Mean time to failure (MTTF) measures the average time a non-repairable asset operates before it fails. For instance, lightbulbs and fan belts. MTTF is used for equipment that is not maintained through repairs but instead replaced upon failure.
In contrast, mean time between failures (MTBF) applies to repairable systems and reflects the average time between one failure and the next. While MTTF focuses on products that are discarded after failure, MTBF is concerned with items that can undergo repairs and continue functioning.
B) How to calculate it:
MTTF = Total operating time / Number of failed assets
C) Example calculation:
If 10 identical light bulbs operate for a total of 10,000 hours and then fail, then:
MTTF =10,000 hours / 10 light bulbs
MTTF = 1,000 hours
D) Benchmark:
A higher MTTF indicates better durability and a longer lifespan for non-repairable assets.
3. Overall equipment effectiveness (OEE)
A) What it measures:
Overall equipment effectiveness (OEE) is a comprehensive maintenance KPI that maintenance managers use to measures the efficiency of equipment by evaluating availability, performance, and quality. In essence, it provides insights into how effectively a manufacturing process is utilized.
B) How to calculate it:
OEE = (Availability × Performance × Quality) x 100%
C) What each of the variables measure and how to calculate them:
#1 Availability:
Availability measures the percentage of scheduled time that the equipment is available to operate. It takes into account downtime events, both planned and unplanned.
Formula:
Availability = Operating time / Planned production time
#2 Performance:
Performance evaluates whether the equipment is running at its maximum speed when it is operating. It considers speed losses.
Formula:
Performance = (Ideal cycle time x Total pieces) / Operating time
#3 Quality:
Quality measures the percentage of good units produced out of the total units started. It accounts for defect losses.
Formula:
Quality = Good pieces / Total pieces
D) Real-world example calculation:
Imagine a factory producing plastic bottles. The scheduled production time is 8 hours (480 minutes). During this period:
- The machine was down for 30 minutes due to maintenance, so the operating time is 450 minutes.
- The ideal cycle time to produce one bottle is 0.5 minutes, and the total number of bottles produced was 900.
- Out of these, 882 bottles were deemed good, and 18 were defective.
#1 Availability = 450 mins / 480 mins = 0.9375 x 100% = 93.75%
#2 Performance = (0.5 mins x 900 bottles) / 450 mins = 1 x 100% = 100%
#3 Quality = 882 bottles / 900 total bottles = 0.98 x 100% = 98%
OEE = 0.9375 (Availability) x 1 (Performance) x 0.98 (Quality) = 0.9188 x 100% = 91.88%
E) Benchmark:
World-class OEE is considered to be 85% and above.
4. Planned maintenance percentage (PMP)
A) What it measures:
PMP indicates the proportion of maintenance activities that are planned rather than reactive. It reflects an organization’s ability to maintain order and control over its maintenance activities.
B) How to calculate it:
PMP = (Planned maintenance hours / Total maintenance hours) x 100%
C) Example calculation:
If 800 hours of maintenance are planned out of a total of 1,000 maintenance hours, then:
PMP = (800 hours / 1,000 hours) x 100%
PMP = 80%
D) Benchmark:
A PMP of 85% or higher is typically considered excellent, indicating proactive maintenance practices.
5. Reactive maintenance percentage
A) What it measures:
Reactive maintenance percentage measures the percentage of maintenance activities that are unplanned or done as a result of equipment failures. Basically, it highlights areas where maintenance strategies could be improved.
B) How to calculate it:
Reactive maintenance percentage = (Reactive maintenance hours / Total maintenance hours) x 100%
C) Example calculation:
If 200 hours of maintenance are reactive out of a total of 1,000 maintenance hours, then:
Reactive maintenance percentage = (200 hours / 1,000 hours) x 100%
Reactive maintenance percentage = 20%
D) Benchmark:
A lower percentage is preferable, with world-class organizations aiming for less than 10%.
6. Maintenance backlog
A) What it measures:
Maintenance backlog measures the amount of maintenance work that is pending or overdue. In other words, it indicates the workload and scheduling efficiency of the maintenance team.
B) How to calculate it:
Maintenance backlog = (Total hours of backlogged maintenance / Total available maintenance hours) x 100%
C) Example calculation:
If there are 500 hours of backlogged maintenance and 2,000 available maintenance hours, then:
Maintenance backlog = (500 hours / 2,000 hours) x 100%
Maintenance backlog = 25%
D) Benchmark:
A backlog of 1-2 weeks is generally optimal, indicating a manageable workload.
7. Emergency maintenance percentage
A) What it measures:
This KPI measures the proportion of maintenance activities that are emergency repairs. It highlights the need for better preventive maintenance planning.
B) How to calculate it:
Emergency maintenance percentage = (Emergency maintenance hours / Total maintenance hours) x 100%
C) Example calculation:
If 50 hours of maintenance are emergencies out of 1,000 total maintenance hours, then:
Emergency maintenance percentage = (50 hours / 1,000 hours) x 100%
Emergency maintenance percentage = 5%
D) Benchmark:
A lower percentage is preferable, with less than 5% considered optimal.
8. Maintenance technician productivity
A) What it measures:
Maintenance technician productivity tracks how efficiently your technicians complete their assigned tasks and can help in identifying training needs and areas for process improvement.
B) How to calculate it:
Maintenance technician productivity = (Total maintenance hours completed / Total technician hours worked) x 100%
C) Example calculation:
If technicians complete 900 maintenance hours out of 1,000 hours worked, then:
Maintenance technician productivity = (900 hours / 1,000 hours) x 100%
Maintenance technician productivity = 90%
D) Benchmark:
If technicians have a high productivity score of 85% and above, this indicates efficient and effective maintenance practices.
9. Schedule compliance
A) What it measures:
Schedule compliance measures how effectively maintenance activities adhere to the predefined schedule. Moreover, it ensures that maintenance tasks are completed on time.
B) How to calculate it:
Schedule compliance = (Completed maintenance tasks / Scheduled maintenance tasks) x 100%
C) Example calculation:
If 90 maintenance tasks are completed out of 100 scheduled, then:
Schedule compliance = (90 tasks / 100 tasks) x 100%
Schedule compliance = 90%
D) Benchmark:
High schedule compliance, typically above 90%, indicates efficient planning and execution.
10. Remaining asset value (RAV)
A) What it measures:
RAV evaluates the current value of an asset after accounting for depreciation and maintenance costs. It helps in making informed decisions about asset replacement or retention.
B) How to calculate it:
RAV = (Current asset value / Original asset value) x 100%
C) Example calculation:
Suppose you purchase an asset with an original value of $100,000; its estimated value is now $20,000. Then:
RAV = ($20,000 / $100,000) x 100%
RAV = 20%
D) Benchmark:
A lower RAV suggests that the asset is nearing the end of its useful life, indicating it may soon require replacement. In contrast, a higher RAV indicates better asset management and maintenance practices.
11. Equipment downtime
A) What it measures:
Equipment downtime measures the total time that equipment is non-operational. It directly impacts production efficiency and operational costs.
B) How to calculate it:
Equipment downtime = (Total downtime hours / Total operating hours) x 100%
C) Example calculation:
If equipment is down for 50 hours out of 1,000 operating hours, then:
Equipment downtime = (50 hours / 1,000 hours) x 100%
Equipment downtime = 5%
D) Benchmark:
Minimizing downtime is crucial. Therefore, an equipment downtime with less than 5% is ideal and considered excellent.
12. Asset utilization
A) What it measures:
Asset utilization assesses how effectively assets are used to support production. In fact, it shows if assets are being underused, overworked, or used optimally.
B) How to calculate it:
Asset utilization = (Actual output / Maximum possible output) x 100%
C) Example calculation:
If a machine produces 950 units out of a maximum capacity of 1,000 units, then:
Asset utilization = (950 units / 1,000 units) x 100%
Asset utilization = 95%
D) Benchmark:
A high asset utilization that is typically above 85% indicates efficient use of resources.
How to determine which maintenance KPIs to track
Selecting the right maintenance KPIs to track involves a strategic approach to align these metrics with your organization's goals and operational needs.
It is essential to focus on a manageable number of KPIs, typically between 5 to 10, to ensure clarity and actionable insights without overwhelming your team. The choice of KPIs can also be influenced by industry, location, and other factors. Industries with high regulatory requirements may prioritize compliance-related metrics, while geographic factors could affect the importance of supply chain reliability.
To determine which KPIs to track, consider asking yourself the following questions:
- What are the primary objectives of your maintenance program?
- Are you focusing on reducing downtime, improving asset reliability, or optimizing maintenance costs?
- Which assets are most critical to your operations, and how do they impact your overall productivity?
Additionally, evaluate whether the data for potential KPIs is readily available and reliable. By addressing these questions, you can identify the maintenance KPIs that will provide the most value and drive continuous improvement in your maintenance strategy.
7 steps to use maintenance KPIs effectively
Maintenance KPIs are invaluable tools for optimizing asset management and ensuring operational efficiency. To harness their full potential, it's essential to implement a strategic approach. Here are seven steps to effectively use maintenance KPIs:
1. Define clear objectives
Before implementing any maintenance KPIs, it's crucial to establish clear objectives that align with your organization's goals. So, determine what you aim to achieve with your maintenance program, whether it's reducing downtime, minimizing costs, or improving asset reliability.
By setting specific objectives, you can select the most relevant maintenance KPIs that will provide actionable insights and drive meaningful improvements.
2. Select the right KPIs
Choose KPIs that are directly aligned with your maintenance objectives and provide valuable insights into your operations. Consider factors such as equipment criticality, industry benchmarks, and specific challenges your organization faces.
Key KPIs might include Mean Time Between Failures (MTBF), Mean Time to Failure (MTTF), and Overall Equipment Effectiveness (OEE). Selecting the right maintenance KPIs ensures that you are monitoring performance metrics that truly matter to your organization.
3. Establish baselines and benchmarks
To effectively measure progress, it's essential to establish baseline metrics and industry benchmarks. Baselines provide a reference point for assessing improvements over time, while benchmarks allow you to compare your performance against industry standards.
By understanding where you currently stand, you can set realistic targets and track your progress toward achieving your maintenance goals.
4. Implement a monitoring system
Develop a robust system for collecting, tracking, and analyzing maintenance KPI data. Utilize maintenance management software or a computerized maintenance management system (CMMS) to automate data collection and generate real-time reports.
This system should be user-friendly, allowing maintenance teams to access and interpret KPI data easily. Regular monitoring ensures that you can quickly identify trends, anomalies, and areas for improvement.
5. Review and analyze data regularly
Conduct regular reviews and analyses of your maintenance KPI data to identify patterns and insights. Additionally, schedule routine meetings with your maintenance team to discuss maintenance performance metrics, assess progress toward goals, and identify areas that require attention.
By analyzing data regularly, you can make informed decisions, prioritize maintenance activities, and implement corrective actions to optimize performance.
6. Communicate results and encourage feedback
Share maintenance KPI results with all relevant stakeholders, including maintenance teams, management, and other departments. By doing so, this open communication fosters a culture of transparency and encourages collaboration and feedback.
Moreover, solicit input from team members to understand their perspectives and gather suggestions for improvement. This collaborative approach ensures that everyone is aligned with organizational goals and committed to continuous improvement.
7. Adjust and refine KPIs
As your maintenance program evolves, it's essential to adjust and refine your maintenance KPIs to ensure they remain relevant and effective. So, regularly assess whether your KPIs align with changing business needs and operational conditions.
Be open to making adjustments based on feedback, new insights, and advancements in technology. By continuously refining your KPIs, you can maintain their effectiveness and drive ongoing improvements in maintenance performance.
Harnessing technology for maintenance KPI optimization
Leveraging tools and software to create, track, and analyze maintenance KPIs is crucial for maintaining operational excellence and efficiency.
Advanced solutions like LeanSuite's KPI Builder provide a comprehensive platform that empowers you to design custom KPIs tailored to your specific maintenance needs. This tool not only facilitates the creation and management of diverse KPIs, but also offers robust tracking and analytical capabilities.
By utilizing such technology, you can gain real-time insights into your maintenance operations, identify trends, and make data-driven decisions to optimize performance. The ability to monitor and evaluate KPIs effectively ensures that maintenance strategies align with broader business goals. Ultimately, enhancing asset reliability, reducing downtime, and driving continuous improvement.
